Title: Performance evaluation in a two-stage network-DEA with intermediate products

Authors: Hoda Golshani; Mohammad Khoveyni; Hadi Bagherzadeh Valami; Robabeh Eslami

Addresses: Department of Applied Mathematics, Yadegar-e-Imam Khomeini (RAH), Shahre-Rey Branch, Islamic Azad University, Tehran, Iran ' Department of Applied Mathematics, Yadegar-e-Imam Khomeini (RAH), Shahre-Rey Branch, Islamic Azad University, Tehran, Iran ' Department of Applied Mathematics, Yadegar-e-Imam Khomeini (RAH), Shahre-Rey Branch, Islamic Azad University, Tehran, Iran ' Department of Mathematics, Faculty of Technology and Engineering, South Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract: The main difference between conventional data envelopment analysis (DEA) and network data envelopment analysis (NDEA) lies in the internal structure of a decision-making unit (DMU). Most of the existing NDEA methodologies neglect to address the issue of incorporating the influence of the intermediate, directly in the objective function. To overcome this shortcoming, in this paper, based on the feature of the SBM model, the researcher is setting an NSBM model for evaluating the overall efficiency score by using two steps in a generic two-stage structure. For this reason, firstly, the researcher solves an additive model (ADD) for finding the amount of the optimal value of the intermediate measures. While in the second step, in our modified NSBM model, the researcher has incorporated the optimal value of the objective function which is introduced. So, our sole contribution will be presenting a model for finding overall efficiency and calculating the unique value for stage efficiencies, input, the intermediate and output-oriented efficiency, which is an essential issue in the network research area. Finally, a numerical example of 30 US commercial banks from Chen et al. (2016) are provided for verifying our proposed approach.

Keywords: data envelopment analysis; DEA; intermediate products; slack-based measure; SBM; efficiency; network data envelopment analysis; NDEA; two-stage; intermediate-oriented efficiency.

DOI: 10.1504/IJIDS.2021.113600

International Journal of Information and Decision Sciences, 2021 Vol.13 No.1, pp.42 - 58

Received: 21 Jun 2018
Accepted: 31 May 2019
Published online: 15 Mar 2021 *

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