Performance measurement for network DEA with undesirable factors

Zhongsheng Hua and Yiwen Bian

International Journal of Management and Decision Making, 2008, vol. 9, issue 2, 141-153

Abstract: Traditional Data Envelopment Analysis (DEA) models take Decision-Making Unit (DMU) as a 'black box' without considering the inputs/outputs of its intermediate production processes. To provide efficiency enhancing information regarding the sources of DMUs' inefficiencies, researchers investigate network DEA models. This paper proposes a network DEA model in the presence of undesirable factors. In the network DEA model, a DMU is composed of a set of interdependent sub-DMUs, that is, input of a sub-DMU may be an undesirable output of another sub-DMU. We develop a method of estimating efficiency of such DMU, and analyses efficiency relationship between a DMU and its sub-DMUs. Our model provides a way of improving performance of a DMU through identifying its inefficient sub-DMUs. Numerical examples are used to show our results.

Keywords: data envelopment analysis; network DEA; undesirable factors; performance measurement; decision making. (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (20)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmdma:v:9:y:2008:i:2:p:141-153

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