IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v38y2010i6p423-430.html
   My bibliography  Save this article

Measuring performance of two-stage network structures by DEA: A review and future perspective

Author

Listed:
  • Cook, Wade D.
  • Liang, Liang
  • Zhu, Joe

Abstract

Data envelopment analysis (DEA) is a method for measuring the efficiency of peer decision making units (DMUs). An important area of development in recent years has been devoted to applications wherein DMUs represent two-stage or network processes. One particular subset of such processes is those in which all the outputs from the first stage are the only inputs to the second stage. The current paper reviews these models and establishes relations among various approaches. We show that all the existing approaches can be categorized as using either Stackelberg (leader-follower), or cooperative game concepts. Future perspectives and challenges are discussed.

Suggested Citation

  • Cook, Wade D. & Liang, Liang & Zhu, Joe, 2010. "Measuring performance of two-stage network structures by DEA: A review and future perspective," Omega, Elsevier, vol. 38(6), pages 423-430, December.
    • Handle: RePEc:eee:jomega:v:38:y:2010:i:6:p:423-430
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305-0483(09)00099-1
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fare, Rolf & Grosskopf, Shawna, 1996. "Productivity and intermediate products: A frontier approach," Economics Letters, Elsevier, vol. 50(1), pages 65-70, January.
    2. Rolf Färe & Gerald Whittaker, 1995. "An Intermediate Input Model Of Dairy Production Using Complex Survey Data," Journal of Agricultural Economics, Wiley Blackwell, vol. 46(2), pages 201-213, May.
    3. Chen, Yao & Liang, Liang & Zhu, Joe, 2009. "Equivalence in two-stage DEA approaches," European Journal of Operational Research, Elsevier, vol. 193(2), pages 600-604, March.
    4. Avkiran, Necmi K., 2009. "Opening the black box of efficiency analysis: An illustration with UAE banks," Omega, Elsevier, vol. 37(4), pages 930-941, August.
    5. Chen, Yao & Cook, Wade D. & Zhu, Joe, 2010. "Deriving the DEA frontier for two-stage processes," European Journal of Operational Research, Elsevier, vol. 202(1), pages 138-142, April.
    6. Zhu, Joe, 2000. "Multi-factor performance measure model with an application to Fortune 500 companies," European Journal of Operational Research, Elsevier, vol. 123(1), pages 105-124, May.
    7. Chien Wang & Ram Gopal & Stanley Zionts, 1997. "Use of Data Envelopment Analysis in assessing Information Technology impact on firm performance," Annals of Operations Research, Springer, vol. 73(0), pages 191-213, October.
    8. Fukuyama, Hirofumi & Weber, William L., 2010. "A slacks-based inefficiency measure for a two-stage system with bad outputs," Omega, Elsevier, vol. 38(5), pages 398-409, October.
    9. Cook, Wade D. & Hababou, Moez, 2001. "Sales performance measurement in bank branches," Omega, Elsevier, vol. 29(4), pages 299-307, August.
    10. Castelli, Lorenzo & Pesenti, Raffaele & Ukovich, Walter, 2004. "DEA-like models for the efficiency evaluation of hierarchically structured units," European Journal of Operational Research, Elsevier, vol. 154(2), pages 465-476, April.
    11. Chen, Yao & Cook, Wade D. & Li, Ning & Zhu, Joe, 2009. "Additive efficiency decomposition in two-stage DEA," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1170-1176, August.
    12. Yu, Ming-Miin & Lin, Erwin T.J., 2008. "Efficiency and effectiveness in railway performance using a multi-activity network DEA model," Omega, Elsevier, vol. 36(6), pages 1005-1017, December.
    13. Wade Cook & Moez Hababou & Hans Tuenter, 2000. "Multicomponent Efficiency Measurement and Shared Inputs in Data Envelopment Analysis: An Application to Sales and Service Performance in Bank Branches," Journal of Productivity Analysis, Springer, vol. 14(3), pages 209-224, November.
    14. Tone, Kaoru & Tsutsui, Miki, 2009. "Network DEA: A slacks-based measure approach," European Journal of Operational Research, Elsevier, vol. 197(1), pages 243-252, August.
    15. Thomas Sexton & Herbert Lewis, 2003. "Two-Stage DEA: An Application to Major League Baseball," Journal of Productivity Analysis, Springer, vol. 19(2), pages 227-249, April.
    16. Liang Liang & Feng Yang & Wade Cook & Joe Zhu, 2006. "DEA models for supply chain efficiency evaluation," Annals of Operations Research, Springer, vol. 145(1), pages 35-49, July.
    17. Chen, Chien-Ming, 2009. "A network-DEA model with new efficiency measures to incorporate the dynamic effect in production networks," European Journal of Operational Research, Elsevier, vol. 194(3), pages 687-699, May.
    18. Lawrence M. Seiford & Joe Zhu, 1999. "Profitability and Marketability of the Top 55 U.S. Commercial Banks," Management Science, INFORMS, vol. 45(9), pages 1270-1288, September.
    19. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    20. Kao, Chiang & Hwang, Shiuh-Nan, 2008. "Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan," European Journal of Operational Research, Elsevier, vol. 185(1), pages 418-429, February.
    21. Tone, Kaoru & Tsutsui, Miki, 2010. "Dynamic DEA: A slacks-based measure approach," Omega, Elsevier, vol. 38(3-4), pages 145-156, June.
    22. Kao, Chiang, 2009. "Efficiency measurement for parallel production systems," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1107-1112, August.
    23. Huang, Zhimin & Li, Susan X., 2001. "Co-op advertising models in manufacturer-retailer supply chains: A game theory approach," European Journal of Operational Research, Elsevier, vol. 135(3), pages 527-544, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    2. AGRELL, Per & HATAMI-MARBINI, Adel, 2011. "Frontier-based performance analysis models for supply chain management; state of the art and research directions," LIDAM Discussion Papers CORE 2011069, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Tatiana Bencova & Andrea Bohacikova, 2022. "DEA in Performance Measurement of Two-Stage Processes: Comparative Overview of the Literature," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 111-129.
    4. Fukuyama, Hirofumi & Weber, William L., 2010. "A slacks-based inefficiency measure for a two-stage system with bad outputs," Omega, Elsevier, vol. 38(5), pages 398-409, October.
    5. Halkos, George & Tzeremes, Nickolaos & Kourtzidis, Stavros, 2011. "The use of supply chain DEA models in operations management: A survey," MPRA Paper 31846, University Library of Munich, Germany.
    6. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min, 2016. "Research fronts in data envelopment analysis," Omega, Elsevier, vol. 58(C), pages 33-45.
    7. Tavakoli, Ibrahim M. & Mostafaee, Amin, 2019. "Free disposal hull efficiency scores of units with network structures," European Journal of Operational Research, Elsevier, vol. 277(3), pages 1027-1036.
    8. Lorenzo Castelli & Raffaele Pesenti & Walter Ukovich, 2010. "A classification of DEA models when the internal structure of the Decision Making Units is considered," Annals of Operations Research, Springer, vol. 173(1), pages 207-235, January.
    9. Liu, John S. & Lu, Louis Y.Y. & Lu, Wen-Min & Lin, Bruce J.Y., 2013. "Data envelopment analysis 1978–2010: A citation-based literature survey," Omega, Elsevier, vol. 41(1), pages 3-15.
    10. Dariush Akbarian, 2021. "Network DEA based on DEA-ratio," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-26, December.
    11. Lewis, Herbert F. & Mallikarjun, Sreekanth & Sexton, Thomas R., 2013. "Unoriented two-stage DEA: The case of the oscillating intermediate products," European Journal of Operational Research, Elsevier, vol. 229(2), pages 529-539.
    12. Huang, Chin-wei & Ho, Foo Nin & Chiu, Yung-ho, 2014. "Measurement of tourist hotels׳ productive efficiency, occupancy, and catering service effectiveness using a modified two-stage DEA model in Taiwan," Omega, Elsevier, vol. 48(C), pages 49-59.
    13. Chen, Yao & Du, Juan & David Sherman, H. & Zhu, Joe, 2010. "DEA model with shared resources and efficiency decomposition," European Journal of Operational Research, Elsevier, vol. 207(1), pages 339-349, November.
    14. Akther, Syed & Fukuyama, Hirofumi & Weber, William L., 2013. "Estimating two-stage network Slacks-based inefficiency: An application to Bangladesh banking," Omega, Elsevier, vol. 41(1), pages 88-96.
    15. Kao, Chiang, 2014. "Efficiency decomposition for general multi-stage systems in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 232(1), pages 117-124.
    16. Sahoo, Biresh K. & Zhu, Joe & Tone, Kaoru & Klemen, Bernhard M., 2014. "Decomposing technical efficiency and scale elasticity in two-stage network DEA," European Journal of Operational Research, Elsevier, vol. 233(3), pages 584-594.
    17. Arif Muhammad Tali & Tirupathi Rao Padi & Qaiser Farooq Dar, 2016. "Slack- based Measures of Efficiency in Two-stage Process: An Approach Based on Data Envelopment Analysis with Double Frontiers," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 6(3), pages 1194-1194.
    18. Hadi Ghafoorian & NikIntan Norhan & Mohammed Ndaliman Abubakar & Fazel Mohammadi Nodeh, 2013. "Efficiency Considering Credit Risk in Banking Industry, Using Two-stage DEA," Journal of Social and Development Sciences, AMH International, vol. 4(8), pages 356-360.
    19. Lu, Wen-Min & Liu, John S. & Kweh, Qian Long & Wang, Chung-Wei, 2016. "Exploring the benchmarks of the Taiwanese investment trust corporations: Management and investment efficiency perspectives," European Journal of Operational Research, Elsevier, vol. 248(2), pages 607-618.
    20. Li, Yongjun & Chen, Yao & Liang, Liang & Xie, Jianhui, 2012. "DEA models for extended two-stage network structures," Omega, Elsevier, vol. 40(5), pages 611-618.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:38:y:2010:i:6:p:423-430. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.