Ranking Two-Stage Production Units in Data Envelopment Analysis

Roza Azizi () and Reza Kazemi Matin
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Roza Azizi: Department of Mathematics, Karaj Branch, Islamic Azad University, Karaj, Iran
Reza Kazemi Matin: Department of Mathematics, Karaj Branch, Islamic Azad University, Karaj, Iran

Asia-Pacific Journal of Operational Research (APJOR), 2016, vol. 33, issue 01, 1-19

Abstract: In this paper, we propose a new approach to rank two-stage production systems in data envelopment analysis based on performance of the stages. To do this, a method is devised to compare the stages performance of a special two-stage unit with the corresponding stages performance of other units. The relative performance of two-stage production units is investigated under new definitions of weak and strong relations and a new ranking criterion is introduced as the result. The most important features of our method is the ability to achieve ranking intervals for two-stage production units based on the introduced relations over all feasible weights, as well as the ability to generate accurate information about sources of inefficiency of two-stage production units.

Keywords: Data envelopment analysis; two-stage production systems; weak and strong relation; ranking interval; inefficiency sources (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (1)

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DOI: 10.1142/S0217595916500020

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