A Network-DEA Model with Internal Dynamic Effects
Modern production networks are comprised of a large collection of interrelated value-adding processes. Adding to this, the flow time of such a complex network can easily go from weeks to months, making time an influential factor in constructing efficient frontier for the network technology. Both the network structure and dynamics in the production environment stand in sharp contrast with the standard DEA model, which assumes that the internal process is a “black box” and that inputs and outputs are independent across time periods. In light of the above limitations, this chapter introduces an approach to computing the technical efficiency scores for a dynamic production network and its sub-processes.
KeywordsNetwork Productive efficiency Dynamic effects
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