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Efficiency analysis in two-stage structures using fuzzy data envelopment analysis

Author

Listed:
  • Adel Hatami-Marbini

    (De Montfort University)

  • Saber Saati

    (Islamic Azad University)

  • Seyed Mojtaba Sajadi

    (University of Tehran)

Abstract

Two-stage data envelopment analysis (TsDEA) models evaluate the performance of a set of production systems in which each system includes two operational stages. Taking into account the internal structures is commonly found in many situations such as seller-buyer supply chain, health care provision and environmental management. Contrary to conventional DEA models as a black-box structure, TsDEA provides further insight into sources of inefficiencies and a more informative basis for performance evaluation. In addition, ignoring the qualitative and imprecise data leads to distorted evaluations, both for the subunits and the system efficiency. We present the fuzzy input and output-oriented TsDEA models to calculate the global and pure technical efficiencies of a system and sub-processes when some data are fuzzy. To this end, we propose a possibilistic programming problem and then convert it into a deterministic interval programming problem using the α-level based method. The proposed method preserves the link between two stages in the sense that the total efficiency of the system is equal to the product of the efficiencies derived from two stages. In addition to the study of technical efficiency, this research includes two further contributions to the ancillary literature; firstly, we minutely discuss the efficiency decompositions to indicate the sources of inefficiency and secondly, we present a method for ranking the efficient units in a fuzzy environment. An empirical illustration is also utilised to show the applicability of the proposed technique.

Suggested Citation

  • Adel Hatami-Marbini & Saber Saati & Seyed Mojtaba Sajadi, 2018. "Efficiency analysis in two-stage structures using fuzzy data envelopment analysis," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(4), pages 909-932, December.
    • Handle: RePEc:spr:cejnor:v:26:y:2018:i:4:d:10.1007_s10100-018-0545-8
    DOI: 10.1007/s10100-018-0545-8
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    References listed on IDEAS

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    Cited by:

    1. Jing Fu, 2018. "Two-stage data envelopment analysis with undesirable intermediate measures: an application to air quality improvement in China," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(4), pages 861-885, December.
    2. Fengyi Lin & Sheng-Wei Lin & Wen-Min Lu, 2018. "Sustainability Assessment of Taiwan’s Semiconductor Industry: A New Hybrid Model Using Combined Analytic Hierarchy Process and Two-Stage Additive Network Data Envelopment Analysis," Sustainability, MDPI, vol. 10(11), pages 1-16, November.
    3. Josef Jablonský & Ali Emrouznejad & Mehdi Toloo, 2018. "Editorial: Special issue on data envelopment analysis," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(4), pages 809-812, December.

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