A Bounded Additive Model for Efficiency Evaluation in Two-Stage Production Systems With Negative Data
Subject Areas : Data Envelopment AnalysisHamidreza Babaei Asil 1 , Reza Kazemi Matin 2 , Mohsen Khounsiavash 3 , Zohreh Moghaddas 4
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Keywords: two-stage systems, Data Envelopment Analysis (DEA), Negative data, Efficiency, Additive models,
Abstract :
Data Envelopment Analysis (DEA) is a method for assessing the efficiency of Decision Making Units (DMUs). Traditional DEA models do not examine the potential differences between two stages caused by intermediate operations. As a result, DEA has been extended to evaluate the efficiency of two-stage processes. In these processes, all outputs of the first stage are intermediate operations that comprise the inputs of the second stage. The input data in real-world applications may have negative values. In this study, considering the importance of network production processes, we deal with the efficiency evaluation of two-stage production units with negative data. Also, we extend CRS (constant returns to scale) bounded additive model for the efficiency evaluation of the two-stage units in the presence of negative data. For illustration, we evaluate the efficiency and ranking of 36 airlines by applying the new model.
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