IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v295y2020i1d10.1007_s10479-020-03665-x.html
   My bibliography  Save this article

A two-stage DEA model with partial impacts between inputs and outputs: application in refinery industries

Author

Listed:
  • Mohammad Nemati

    (Islamic Azad University)

  • Reza Kazemi Matin

    (Islamic Azad University)

  • Mehdi Toloo

    (VŠB-Technical University of Ostrava)

Abstract

Conventional data envelopment analysis (DEA) methods are useful for estimating the performance measure of decision making units (DMUs) that each DMU uses multiple inputs to produce multiple outputs without considering any partial impacts between inputs and outputs. Nevertheless, there are some real-world situations where DMUs may possess several production lines with a two-stage network structure that each production line use inputs according to their needs. The current paper extends the recent work by Ma (Expert Syst Appl Int J 42:4339–4347, 2015) to consider partial impact between inputs and outputs for two-stage network production systems. Toward this end, we consider several input–output bundles in each stage for production lines. We formulate a couple of new mathematical programming models in the DEA framework with the aim of considering partial impact between inputs and outputs for calculating aggregate, overall, and subunit efficiencies along with resource usage by production lines for a two-stage production system Finally, an application in refinery industries is provided as an example to illustrate the potential application of the proposed method.

Suggested Citation

  • Mohammad Nemati & Reza Kazemi Matin & Mehdi Toloo, 2020. "A two-stage DEA model with partial impacts between inputs and outputs: application in refinery industries," Annals of Operations Research, Springer, vol. 295(1), pages 285-312, December.
    • Handle: RePEc:spr:annopr:v:295:y:2020:i:1:d:10.1007_s10479-020-03665-x
    DOI: 10.1007/s10479-020-03665-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-020-03665-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-020-03665-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wu, Jie & Zhu, Qingyuan & Ji, Xiang & Chu, Junfei & Liang, Liang, 2016. "Two-stage network processes with shared resources and resources recovered from undesirable outputs," European Journal of Operational Research, Elsevier, vol. 251(1), pages 182-197.
    2. Li, Wang Hong & Liang, Liang & Cook, Wade D., 2017. "Measuring efficiency with products, by-products and parent-offspring relations: A conditional two-stage DEA model," Omega, Elsevier, vol. 68(C), pages 95-104.
    3. Fare, Rolf & Grosskopf, Shawna, 1996. "Productivity and intermediate products: A frontier approach," Economics Letters, Elsevier, vol. 50(1), pages 65-70, January.
    4. Chien Wang & Ram Gopal & Stanley Zionts, 1997. "Use of Data Envelopment Analysis in assessing Information Technology impact on firm performance," Annals of Operations Research, Springer, vol. 73(0), pages 191-213, October.
    5. Sepideh Kaffash & Reza Kazemi Matin & Mohammad Tajik, 2018. "A directional semi-oriented radial DEA measure: an application on financial stability and the efficiency of banks," Annals of Operations Research, Springer, vol. 264(1), pages 213-234, May.
    6. Guo, Chuanyin & Zhu, Joe, 2017. "Non-cooperative two-stage network DEA model: Linear vs. parametric linear," European Journal of Operational Research, Elsevier, vol. 258(1), pages 398-400.
    7. Fukuyama, Hirofumi & Weber, William L., 2010. "A slacks-based inefficiency measure for a two-stage system with bad outputs," Omega, Elsevier, vol. 38(5), pages 398-409, October.
    8. Philipp Geymueller, 2009. "Static versus dynamic DEA in electricity regulation: the case of US transmission system operators," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 17(4), pages 397-413, December.
    9. Alireza Amirteimoori, 2013. "A DEA two-stage decision processes with shared resources," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 21(1), pages 141-151, January.
    10. Cook, Wade D. & Hababou, Moez, 2001. "Sales performance measurement in bank branches," Omega, Elsevier, vol. 29(4), pages 299-307, August.
    11. Chen, Yao & Cook, Wade D. & Li, Ning & Zhu, Joe, 2009. "Additive efficiency decomposition in two-stage DEA," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1170-1176, August.
    12. Dariush Khezrimotlagh & Yao Chen, 2018. "Data Envelopment Analysis," International Series in Operations Research & Management Science, in: Decision Making and Performance Evaluation Using Data Envelopment Analysis, chapter 0, pages 217-234, Springer.
    13. Wang, Qunwei & Hang, Ye & Sun, Licheng & Zhao, Zengyao, 2016. "Two-stage innovation efficiency of new energy enterprises in China: A non-radial DEA approach," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 254-261.
    14. Chen, Yao & Du, Juan & David Sherman, H. & Zhu, Joe, 2010. "DEA model with shared resources and efficiency decomposition," European Journal of Operational Research, Elsevier, vol. 207(1), pages 339-349, November.
    15. A. Charnes & W. W. Cooper, 1962. "Programming with linear fractional functionals," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 9(3‐4), pages 181-186, September.
    16. Zha, Yong & Liang, Liang, 2010. "Two-stage cooperation model with input freely distributed among the stages," European Journal of Operational Research, Elsevier, vol. 205(2), pages 332-338, September.
    17. Sonia Aviles-Sacoto & Wade D Cook & Raha Imanirad & Joe Zhu, 2015. "Two-stage network DEA: when intermediate measures can be treated as outputs from the second stage," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 66(11), pages 1868-1877, November.
    18. Raha Imanirad & Wade D. Cook & Joe Zhu, 2013. "Partial input to output impacts in DEA: Production considerations and resource sharing among business subunits," Naval Research Logistics (NRL), John Wiley & Sons, vol. 60(3), pages 190-207, April.
    19. Thomas Sexton & Herbert Lewis, 2003. "Two-Stage DEA: An Application to Major League Baseball," Journal of Productivity Analysis, Springer, vol. 19(2), pages 227-249, April.
    20. Li, Yongjun & Chen, Yao & Liang, Liang & Xie, Jianhui, 2012. "DEA models for extended two-stage network structures," Omega, Elsevier, vol. 40(5), pages 611-618.
    21. Lawrence M. Seiford & Joe Zhu, 1999. "Profitability and Marketability of the Top 55 U.S. Commercial Banks," Management Science, INFORMS, vol. 45(9), pages 1270-1288, September.
    22. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    23. Kao, Chiang & Hwang, Shiuh-Nan, 2011. "Decomposition of technical and scale efficiencies in two-stage production systems," European Journal of Operational Research, Elsevier, vol. 211(3), pages 515-519, June.
    24. Liu, Wenbin & Zhou, Zhongbao & Ma, Chaoqun & Liu, Debin & Shen, Wanfang, 2015. "Two-stage DEA models with undesirable input-intermediate-outputs," Omega, Elsevier, vol. 56(C), pages 74-87.
    25. Akther, Syed & Fukuyama, Hirofumi & Weber, William L., 2013. "Estimating two-stage network Slacks-based inefficiency: An application to Bangladesh banking," Omega, Elsevier, vol. 41(1), pages 88-96.
    26. Cook, Wade D. & Liang, Liang & Zhu, Joe, 2010. "Measuring performance of two-stage network structures by DEA: A review and future perspective," Omega, Elsevier, vol. 38(6), pages 423-430, December.
    27. Mahdiloo, Mahdi & Toloo, Mehdi & Duong, Thach-Thao & Farzipoor Saen, Reza & Tatham, Peter, 2018. "Integrated data envelopment analysis: Linear vs. nonlinear model," European Journal of Operational Research, Elsevier, vol. 268(1), pages 255-267.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tatiana Bencova & Andrea Bohacikova, 2022. "DEA in Performance Measurement of Two-Stage Processes: Comparative Overview of the Literature," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 111-129.
    2. Christina Bampatsou & George Halkos & Olga-Helen Astara, 2022. "Composite indicators in evaluating tourism performance and seasonality," Operational Research, Springer, vol. 22(3), pages 2373-2396, July.
    3. Hamid Kiaei & Reza Kazemi Matin, 2022. "New common set of weights method in black-box and two-stage data envelopment analysis," Annals of Operations Research, Springer, vol. 309(1), pages 143-162, February.
    4. Ming-Fu Hsu & Ying-Shao Hsin & Fu-Jiing Shiue, 2022. "Business analytics for corporate risk management and performance improvement," Annals of Operations Research, Springer, vol. 315(2), pages 629-669, August.
    5. Adel Hatami-Marbini & Aliasghar Arabmaldar & John Otu Asu, 2022. "Robust productivity growth and efficiency measurement with undesirable outputs: evidence from the oil industry," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1213-1254, December.
    6. Hamid Kiaei & Reza Farzipoor Saen & Reza Kazemi Matin, 2023. "Cross-efficiency evaluation and improvement in two-stage network data envelopment analysis," Annals of Operations Research, Springer, vol. 321(1), pages 281-309, February.
    7. Sinem Buyuksaatci Kiris & Enes Eryarsoy & Selim Zaim & Dursun Delen, 2023. "An integrated approach for lean production using simulation and data envelopment analysis," Annals of Operations Research, Springer, vol. 320(2), pages 863-886, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kao, Chiang, 2014. "Network data envelopment analysis: A review," European Journal of Operational Research, Elsevier, vol. 239(1), pages 1-16.
    2. Lim, Dong-Joon & Kim, Moon-Su, 2022. "Measuring dynamic efficiency with variable time lag effects," Omega, Elsevier, vol. 108(C).
    3. Tatiana Bencova & Andrea Bohacikova, 2022. "DEA in Performance Measurement of Two-Stage Processes: Comparative Overview of the Literature," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 111-129.
    4. Wu, Jie & Zhu, Qingyuan & Ji, Xiang & Chu, Junfei & Liang, Liang, 2016. "Two-stage network processes with shared resources and resources recovered from undesirable outputs," European Journal of Operational Research, Elsevier, vol. 251(1), pages 182-197.
    5. Khoveyni, Mohammad & Fukuyama, Hirofumi & Eslami, Robabeh & Yang, Guo-liang, 2019. "Variations effect of intermediate products on the second stage in two-stage processes," Omega, Elsevier, vol. 85(C), pages 35-48.
    6. Fukuyama, Hirofumi & Matousek, Roman & Tzeremes, Nickolaos G., 2020. "A Nerlovian cost inefficiency two-stage DEA model for modeling banks’ production process: Evidence from the Turkish banking system," Omega, Elsevier, vol. 95(C).
    7. Huang, Chin-wei & Ho, Foo Nin & Chiu, Yung-ho, 2014. "Measurement of tourist hotels׳ productive efficiency, occupancy, and catering service effectiveness using a modified two-stage DEA model in Taiwan," Omega, Elsevier, vol. 48(C), pages 49-59.
    8. Chen, Ya & Li, Yongjun & Liang, Liang & Salo, Ahti & Wu, Huaqing, 2016. "Frontier projection and efficiency decomposition in two-stage processes with slacks-based measures," European Journal of Operational Research, Elsevier, vol. 250(2), pages 543-554.
    9. Jie Wu & Qingyuan Zhu & Junfei Chu & Liang Liang, 2015. "Two-Stage Network Structures with Undesirable Intermediate Outputs Reused: A DEA Based Approach," Computational Economics, Springer;Society for Computational Economics, vol. 46(3), pages 455-477, October.
    10. Wu, Huaqing & Lv, Kui & Liang, Liang & Hu, Hanhui, 2017. "Measuring performance of sustainable manufacturing with recyclable wastes: A case from China’s iron and steel industry," Omega, Elsevier, vol. 66(PA), pages 38-47.
    11. An, Qingxian & Chen, Haoxun & Xiong, Beibei & Wu, Jie & Liang, Liang, 2017. "Target intermediate products setting in a two-stage system with fairness concern," Omega, Elsevier, vol. 73(C), pages 49-59.
    12. Cook, Wade D. & Liang, Liang & Zhu, Joe, 2010. "Measuring performance of two-stage network structures by DEA: A review and future perspective," Omega, Elsevier, vol. 38(6), pages 423-430, December.
    13. Li, Yongjun & Liu, Jin & Ang, Sheng & Yang, Feng, 2021. "Performance evaluation of two-stage network structures with fixed-sum outputs: An application to the 2018winter Olympic Games," Omega, Elsevier, vol. 102(C).
    14. Mohammad Amirkhan & Hosein Didehkhani & Kaveh Khalili-Damghani & Ashkan Hafezalkotob, 2018. "Measuring Performance of a Three-Stage Network Structure Using Data Envelopment Analysis and Nash Bargaining Game: A Supply Chain Application," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(05), pages 1429-1467, September.
    15. AGRELL, Per & HATAMI-MARBINI, Adel, 2011. "Frontier-based performance analysis models for supply chain management; state of the art and research directions," LIDAM Discussion Papers CORE 2011069, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    16. Feng Li & Qingyuan Zhu & Jun Zhuang, 2018. "Analysis of fire protection efficiency in the United States: a two-stage DEA-based approach," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(1), pages 23-68, January.
    17. Li, Yongjun & Lei, Xiyang & Dai, Qianzhi & Liang, Liang, 2015. "Performance evaluation of participating nations at the 2012 London Summer Olympics by a two-stage data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 243(3), pages 964-973.
    18. Lozano, Sebastián, 2016. "Slacks-based inefficiency approach for general networks with bad outputs: An application to the banking sector," Omega, Elsevier, vol. 60(C), pages 73-84.
    19. Wang, Ya & Pan, Jiao-feng & Pei, Rui-min & Yi, Bo-Wen & Yang, Guo-liang, 2020. "Assessing the technological innovation efficiency of China's high-tech industries with a two-stage network DEA approach," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    20. Degl'Innocenti, Marta & Kourtzidis, Stavros A. & Sevic, Zeljko & Tzeremes, Nickolaos G., 2017. "Investigating bank efficiency in transition economies: A window-based weight assurance region approach," Economic Modelling, Elsevier, vol. 67(C), pages 23-33.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:295:y:2020:i:1:d:10.1007_s10479-020-03665-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.