Assessment of two-stage processes cross-efficiency in the presence of undesirable factors

Subject Areas : International Journal of Data Envelopment Analysis

Alireza Amirteimoori ¹ , Maryam Nematizadeh ² , Maryeh Nematizadeh ³

1 - Department of Applied Mathematics, Islamic Azad University of Rasht, Rasht, Iran.
2 - Department of Applied Mathematics, Islamic Azad University, Rasht branch, Rasht, Iran
3 - Department of Mathematics, Technical and Vocational University (TVU), Rasht branch, Rasht, Iran

Received: 2022-03-21 Accepted : 2022-06-24 Published : 2022-08-01

Keywords: Cross-efficiency, Directional distance function, Weak disposability assumption, Two-Stage Structure, Undesirable Output,

Abstract :

Cross-efficiency is a ranking technique based on the peer-evaluation that can increase the discriminating power between efficient decision-making units. This paper intends to assess the two-stage processes consisting of undesirable outputs by applying the cross-efficiency evaluation. Given undesirable outputs, the directional distance function under the weak disposability assumption is utilized. The proposed model under variable returns to scale is designed, which makes it different from the previous models. Furthermore, it can reduce the zero optimal coefficients. By measuring the inputs and outputs inefficiency, the whole system and each of its two stages rank, simultaneously. To analyze the suggested method, an application on the industrial productions of 30 regions of China is used.