Shared Resources and Efficiency Decomposition in Two-Stage Networks

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

Abstract

In many real world scenarios, decision making units (DMUs) may have a two-stage structure with input resources shared by both stages of operations. The distinguishing characteristic is that some of the inputs to the first stage are also consumed by the second stage, and some of the shared inputs cannot be conveniently split up and allocated to operations of the two stages. Recognizing this distinction is critical for these types of DEA applications because measuring the efficiency of the production for first-stage outputs can be misleading and understate the efficiency if DEA fails to consider that some of the inputs generate other second-stage outputs. This chapter presents DEA models for measuring the performance of two-stage network processes with non-splittable shared inputs.

Keywords

Efficiency Intermediate measures Shared resources Two-stage network 

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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.School of Economics and ManagementTongji UniversityShanghaiPeople’s Republic of China
  3. 3.D’Amore-McKim School of BusinessNortheastern UniversityBostonUSA
  4. 4.School of BusinessWorcester Polytechnic InstituteWorcesterUSA

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