Two-stage network-structured production process in the presence of undesirable intermediate measures
Subject Areas : International Journal of Data Envelopment AnalysisAlireza Amirteimoori 1 , Maryam Nematizadeh 2 , Maryeh Nematizadeh 3
1 - Department of Applied Mathematics, Islamic Azad University of Rasht, Rasht, Iran.
2 - Islamic Azad University of Rasht branch
3 - Islamic Azad University of Rasht branch
Keywords: Two-stage process, Undesirable Output, Weak disposability, Intermediate measure, Russell Measure,
Abstract :
The importance of the issue of environmental pollution is so great that the attention of many researchers has drawn attention to the recycling issue in recent decades. Since a proper evaluation can improve the performance of a system in various situations, the presentation of an appropriate method that can evaluate a production system correctly is necessary. Therefore, first, we introduce a two-stage network structure consists of undesirable intermediate measures. Then, by considering the weak disposability assumption to handle desirable and undesirable outputs, and also links between the subsections of the process, a non-radial model to evaluate the performance of the proposed structure is introduced. The proposed model is developed from the perspective of the centralized approach. Also, it is defined based on the Russell-based model. The introduced model can calculate the efficiency of the whole system without the need to evaluate the efficiency of its subsections. A real case on an industrial production system of 30 regions in China is used to illustrate the proposed model.
[1] R. Färe, S. Grosskopf, and C.K. Lovell, The measurement of efficiency of production, Springer Science & Business Media (2013).
[2] J.T. Pastor, J.L. Ruiz, and I. Sirvent, An enhanced DEA Russell graph efficiency measure, European Journal of Operational Research 115(3) (1999)
596-607.
[3] R. Färe, and S. Grosskopf, Network DEA, Socio-Economic Planning Sciences 34 (2000) 35-49.
[4] Y. Chen, and J. Zhu, Measuring information technology's indirect impact on firm performance, Information Technology and Management 5(1) (2004) 9-22.
[5] C. Kao, and S.N. Hwang, Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan, European journal of operational research 185(1) (2008) 418-429.
[6] Y. Chen, W.D. Cook, N. Li, and J. Zhu, Additive efficiency decomposition in two-stage DEA, European journal of operational research 196(3) (2009)
1170-1176.
[7] L. Liang, W.D. Cook, and J. Zhu, DEA models foe two-stage processes: game approach and efficiency decomposition, Naval Research Logistics 55 (2008)
643-53.
[8] J. Wu, Q. Zhu, J. Chu, and L. Liang, Two-stage network structures with undesirable intermediate outputs reused: A DEA based approach, Computational Economics 46(3) (2015) 455-477.
[9] J. Wu, B. Xiong, Q. An, J. Sun, and H. Wu, Total-factor energy efficiency evaluation of Chinese industry by using two-stage DEA model with shared inputs, Annals of Operations Research 255(1) (2017) 257-276.
[10] H. Wu, K. Lv, L. Liang, and H. Hu, Measuring performance of sustainable manufacturing with recyclable wastes: A case from China’s iron and steel industry, Omega, 66 (2017) 38-47.
[11] W. Li, Z. Li, L. Liang, and W.D. Cook, Evaluation of ecological systems and the recycling of undesirable outputs: An efficiency study of regions in China, Socio-Economic Planning Sciences 60 (2017) 77-86.
[12] X. Zhou, R. Luo, L. Yao, S. Cao, S. Wang, and B. Lev, Assessing integrated water use and wastewater treatment systems in China: A mixed network structure two-stage SBM DEA model, Journal of cleaner production 185 (2018) 533-546.
[13] L. Chen, F. Lai, Y.M. Wang, Y. Huang, and F.M. Wu, A two-stage network data envelopment analysis approach for measuring and decomposing environmental efficiency, Computers & Industrial Engineering 119 (2018)
388-403.
[14] Z. Hu, S. Yan, X. Li, L. Yao, and Z. Luo, Evaluating the oil production and wastewater treatment efficiency by an extended two-stage network structure model with feedback variables, Journal of environmental management 251 (2019) 109578.
[15] M. Nematizadeh, A. Amirteimoori, and S. Kordrostami, Performance analysis of two-stage network processes with feedback flows and undesirable factors, Operations Research and Decisions 29(3) (2019) 51-66.
[16] M. Nematizadeh, A. Amirteimoori, S. Kordrostami, and M. Vaez-Ghasemi, Assessment of mixed network processes with shared inputs and undesirable factors, Operations Research and Decisions 30 (2020).
[17] M. Wang, Y. Chen, and Z. Zhou, a novel stochastic two-stage DEA model for evaluating industrial production and waste gas treatment systems, Sustainability 12(6) (2020) 2316.
[18] R.W. Shephard, Theory of Cost and Production functions, Princeton University Press (1970).
[19] T. Kuosmanen, Weak disposability in nonparametric production analysis with undesirable outputs, American Journal of Agricultural Economics 87(4) (2005) 1077-1082.
[20] A. Charnes, and W. W. Cooper, Programming with linear fractional functionals, Naval Research logistics quarterly 9(3‐4) (1962) 181-186.