Network DEA: Additive efficiency decomposition

Cook, Wade D.; Zhu, Joe; Bi, Gongbing; Yang, Feng

doi:10.1016/j.ejor.2010.05.006

Cited by 282 publications

(117 citation statements)

References 10 publications

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“…As pointed out by many authors including Kao and Hwang (2008), Kao (2009), Chen et al (2009), Tone and Tsutsui (2009 and Cook et al (2010), the conventional DEA models apply a single process to evaluate the transforming efficiency of multiple inputs and outputs such that they fail to measure the efforts of different processes and sub-processes within the production systems. Thus, we cannot evaluate the impact of sub-process inefficiencies on the overall efficiency of the system as a whole.…”

Section: Discussionmentioning

confidence: 99%

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The Efficiency Measurement of Parallel Production Systems: A Non-radial Data Envelopment Analysis Model

Ашрафи¹,

Jaafar²,

Bakar³

et al. 2011

Journal of Computer Science

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Problem statement: Data Envelopment Analysis (DEA) is a non-parametric technique for measuring the relative efficiency of a set of production systems or Decision Making Units (DMU) that have multiple inputs and outputs. Sometimes, DMUs have a parallel structure, in which systems composed of parallel units work individually; the sum of their own inputs/outputs is the input/output of the system. For this type of system, conventional DEA models treat each DMU as a black box and ignore the performance of its units. Approach: This study introduces a DEA model in Slacks-Based Measure (SBM) formulation which considers the parallel relationship of the units within the system in measuring the efficiency of the system. Under this framework, the overall efficiency of the system is expressed as a weighted sum of the efficiencies of its units. Results: As an SBM model, the proposed model is non-radial and is suitable for measuring the efficiency when inputs and outputs may change non-proportionally. A theoretical result shows that if any unit of a parallel system is inefficient then the system is inefficient. Conclusion: This study introduces a non-radial DEA model, takes into account the operation of individual components within the parallel production system, to measure the overall efficiency as well as the efficiencies of sub-processes. This helps the decision makers recognize inefficient units and make later improvements.

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Section: Discussionmentioning

confidence: 99%

“…For example see (Sexton and Lewis, 2003;Chen and Zhu, 2004;Liang et al, 2006;Kao and Hwang, 2008;Chen et al, 2009) among others. Recently, Tone and Tsutsui (2009) and Cook et al, (2010) have proposed DEA models for measuring the efficiency of network systems connected in series with linking activities.…”

Section: Introductionmentioning

confidence: 99%

The Efficiency Measurement of Parallel Production Systems: A Non-radial Data Envelopment Analysis Model

Ашрафи¹,

Jaafar²,

Bakar³

et al. 2011

Journal of Computer Science

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“…About the specification of decomposition weights, many works (e.g., Cook et al [36]) chose the endogenous weights that define the weights w p as the virtual inputs (outputs) of stage p divided by total virtual inputs (outputs), representing the relative importance or contribution of the performance of each stage, respectively, to the overall performance of the DMU in the whole process. However, Ang and Chen [37] found that these endogenous weights implied that upstream stages (regardless the stage efficiency scores) in the model would obtain higher priority in efficiency decomposition, which meant that the earlier stages would obtain higher decomposition weights and have a greater influence on the overall efficiency.…”

Section: Methodsmentioning

confidence: 99%

Sustainability Evaluation of Railways in China Using a Two-Stage Network DEA Model with Undesirable Outputs and Shared Resources

Zhou

Han-hui

2017

Sustainability

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This paper constructs an additive two-stage network DEA (data envelopment analysis) model with consideration of undesirable outputs and shared inputs. Following the triple bottom line standard of sustainability, we calculate both the overall and sub-stage sustainability performance of railway transportation in China from 2002 to 2013, from the aspects of economy, environment and society. The results show that the overall sustainability of China's railway presents a character of first declining, then rising and declining again. Moreover, the railway sustainability of China's eastern areas are much better than that of the western and central areas, and the gap has become much larger since 2009. As for the sub-stage efficiency, neither the production stage nor the service stage of the railway is efficient in sustainability, and the efficiency of the production stage is lower than that of service stage and plays a greater impact on the overall sustainability. Therefore, in order to improve the overall sustainability of China's railways, it is essential to improve the level of railway engineering construction and develop technological innovations in railway production.

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“…In addition, some studies proposed decomposition approach for measuring the e ciency of network struc-ture; as an instance, Chen et al developed additive e ciency decomposition approach for measuring the e ciency of two-stage network process [21], same as the study by Cook et al, which represented the overall e ciency of an open multistage process as an additive weighted average of the e ciencies of the individual components [22]. In this regard, Kao and Liu developed a multi-period e ciency measurement in DEA to calculate overall and period e ciencies of a DMU at the same time.…”

Section: Literature Reviewmentioning

confidence: 99%

Efficiency assessment of Iranian Handmade Carpet Company by network DEA

Zegordi

Omid

2017

Scientia Iranica

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Abstract. Di erent categories of Iranian handmade carpet are produced each year. Due to resource limitation, it is so important for managers to allocate more resources to the most e cient categories. Therefore, the main purpose of this illustration is to consider most e cient types of carpet in production and sales stages. To do so, di erent categories of Iranian handmade carpet are considered as DMUs. This study utilizes network DEA for constructing a model to analyze total and partial e ciencies of Iranian Handmade Carpet Company (IHCC), simultaneously. IHCC consists of three main departments that are working jointly to maximize productivity of the rm; therefore, the case of IHCC is a multi-stage system with shared intermediate variables, extra inputs to the second stage, and undesired outputs. The novelty of this paper is the methodology used for calculating the e ciency, which is based on multi-objective programming. Results of experimental data of IHCC are summarized in order to prepare some brilliant management strategies based on partial and total e ciency scores of di erent carpet categories. Because of the lack of familiar researches in the area of carpet industry e ciency measurement, this research will provide valuable information for decision makers.

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Network DEA: Additive efficiency decomposition

Cited by 282 publications

References 10 publications

The Efficiency Measurement of Parallel Production Systems: A Non-radial Data Envelopment Analysis Model

The Efficiency Measurement of Parallel Production Systems: A Non-radial Data Envelopment Analysis Model

Sustainability Evaluation of Railways in China Using a Two-Stage Network DEA Model with Undesirable Outputs and Shared Resources

Efficiency assessment of Iranian Handmade Carpet Company by network DEA

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