Additive Efficiency Decomposition in Network DEA

Chapter
Part of the International Series in Operations Research & Management Science book series (ISOR, volume 208)

Abstract

In conventional data envelopment analysis (DEA), decision making units (DMUs) are generally treated as a black-box in the sense that internal structures are ignored, and the performance of a DMU is assumed to be a function of a set of chosen inputs and outputs. A significant body of work has been directed at problem settings where the DMU is characterized by a multistage process; supply chains and many manufacturing processes take this form. The current chapter presents DEA modeling approaches for network DEA where additive efficiency decompositions are assumed for sub-units/processes/stages. In the additive efficiency decomposition approach, the overall efficiency is expressed as a (weighted) sum of the efficiencies of the individual stages. This approach can be applied under both constant returns to scale (CRS) and variable returns to scale (VRS) assumptions.

Keywords

Data envelopment analysis (DEA) Efficiency Intermediate measure Two-stage Multistage Serial systems Additive decomposition 

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  1. 1.Manning School of BusinessUniversity of Massachusetts at LowellLowellUSA
  2. 2.Schulich School of BusinessYork UniversityTorontoCanada
  3. 3.School of BusinessWorcester Polytechnic InstituteWorcesterUSA

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