Estimating ‎C‎apacity Utilization in Two-Stage Production Systems: A Data Envelopment Analysis Approach

Subject Areas : International Journal of Industrial Mathematics

L. Zeinalzadeh ¹ (Department of Mathematics, Karaj Branch, Islamic Azad University, Karaj, Iran.)
R. Kazemi Matin ² (Department of Mathematics, Karaj Branch, Islamic Azad University, Karaj, Iran.)
AR. Amirteimoori ³ (Department of Mathematics, Rasht Branch, Islamic Azad University, Rasht, Iran.)

Received: 2017-05-09 Accepted : 2018-05-18 Published : 2019-12-01

Keywords: Two-stage production system, Capacity Utilization, Intermediate product, Network Data Envelopment Analysis,

Abstract :

The current study investigates performance in two-stage production systems through the measurement of capacity utilization (CU). In short-run, the degree of capacity utilization depends on the ability of decision making units to utilize fixed production factors. To develop this indicator in two-stage production processes, a modified SBM network DEA model is proposed. A numerical example is also presented to point out the applicability and effectiveness of current model.