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Cross-efficiency evaluation and improvement in two-stage network data envelopment analysis

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Abstract

In Network Data Envelopment Analysis models, by considering the internal structure of production units rather than a simple black-box, more inefficiency sources are identified. The objective of this paper is to assess and improve the performance of Decision Making Units with a two-stage network using cross-efficiency approach. The main contributions of this study include; first, a new benevolent method in cross-efficiency evaluation of two-stage network is proposed. Second, we propose a method for setting inputs and outputs target to improve the cross-evaluations by changing inputs of the first stage and outputs of the second stage, simultaneously. A case study validates the discussions.

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Acknowledgements

The authors would like to thank the Editor and the four anonymous reviewers for their insightful suggestions and careful reading of the manuscript.

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Authors and Affiliations

  1. Department of Mathematics, Faculty of Mathematical Sciences, University of Mazandaran, Babolsar, Iran

    Hamid Kiaei

  2. Department of Operations Management and Business Statistics, College of Economics and Political Science, Sultan Qaboos University, Muscat, Oman

    Reza Farzipoor Saen

  3. Department of Mathematics, Karaj Branch, Islamic Azad University, Karaj, Iran

    Reza Kazemi Matin

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  1. Hamid Kiaei
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  2. Reza Farzipoor Saen
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Correspondence to Reza Farzipoor Saen.

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Kiaei, H., Saen, R.F. & Matin, R.K. Cross-efficiency evaluation and improvement in two-stage network data envelopment analysis. Ann Oper Res 321, 281–309 (2023). https://doi.org/10.1007/s10479-022-04861-7

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