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Shared Resources and Efficiency Decomposition in Two-Stage Networks

In: Data Envelopment Analysis

Author

Listed:
  • Yao Chen

    (University of Massachusetts at Lowell)

  • Juan Du

    (Tongji University)

  • H. David Sherman

    (Northeastern University)

  • Joe Zhu

    (Worcester Polytechnic Institute)

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.

Suggested Citation

  • Yao Chen & Juan Du & H. David Sherman & Joe Zhu, 2014. "Shared Resources and Efficiency Decomposition in Two-Stage Networks," International Series in Operations Research & Management Science, in: Wade D. Cook & Joe Zhu (ed.), Data Envelopment Analysis, edition 127, chapter 0, pages 189-208, Springer.
    • Handle: RePEc:spr:isochp:978-1-4899-8068-7_9
    DOI: 10.1007/978-1-4899-8068-7_9
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    Cited by:

    1. Lim, Dong-Joon & Kim, Moon-Su, 2022. "Measuring dynamic efficiency with variable time lag effects," Omega, Elsevier, vol. 108(C).

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