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DEA for non-homogenous parallel networks

Juan Du, Yao Chen and Jiazhen Huo

Omega, 2015, vol. 56, issue C, 122-132

Abstract: In practice, systems are often composed of a group of sub-units. Each sub-unit has a set of performance metrics that are classified as inputs and outputs in data envelopment analysis (DEA). Conventional DEA views such a system as a “black-box”, other DEA-based models are developed to investigate the inner structure, either with a serial structure where components are connected by intermediate products, or with a parallel system under the key assumption that all sub-units are associated with the same type of inputs and outputs (in differing amounts) without the links. In many applications, however, this property of identical input/output factors may not hold. For example, factories may have various manufacturing lines whose inputs and outputs differ from one another. The current paper proposes a series of DEA models to accommodate settings where non-homogenous sub-units operate in parallel network structures with intermediate measures or links. Both the overall performance of the entire parallel network system and efficiency decomposition for each sub-unit can be evaluated through our method.

Keywords: Data envelopment analysis (DEA); Efficiency; Network; Non-homogeneous sub-units (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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DOI: 10.1016/j.omega.2014.10.001

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