Performance measurement for network DEA with undesirable factors
by Zhongsheng Hua, Yiwen Bian
International Journal of Management and Decision Making (IJMDM), Vol. 9, No. 2, 2008

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.

Online publication date: Mon, 18-Feb-2008

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