Additive Efficiency Decomposition in Network DEA

Yao Chen (), Wade D. Cook () and Joe Zhu ()
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Yao Chen: University of Massachusetts at Lowell
Wade D. Cook: York University
Joe Zhu: Worcester Polytechnic Institute

Chapter Chapter 5 in Data Envelopment Analysis, 2014, pp 91-118 from Springer

Abstract: 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 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/978-1-4899-8068-7_5

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