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Additive Efficiency Decomposition in Network DEA

In: Data Envelopment Analysis

Author

Listed:
  • Yao Chen

    (University of Massachusetts at Lowell)

  • Wade D. Cook

    (York University)

  • Joe Zhu

    (Worcester Polytechnic Institute)

Abstract

In conventional data envelopment analysis (DEA), decision making units (DMUs) are generally treated as a black-box in the sense that internal structures are ignored, and the performance of a DMU is assumed to be a function of a set of chosen inputs and outputs. A significant body of work has been directed at problem settings where the DMU is characterized by a multistage process; supply chains and many manufacturing processes take this form. The current chapter presents DEA modeling approaches for network DEA where additive efficiency decompositions are assumed for sub-units/processes/stages. In the additive efficiency decomposition approach, the overall efficiency is expressed as a (weighted) sum of the efficiencies of the individual stages. This approach can be applied under both constant returns to scale (CRS) and variable returns to scale (VRS) assumptions.

Suggested Citation

  • Yao Chen & Wade D. Cook & Joe Zhu, 2014. "Additive Efficiency Decomposition in Network DEA," International Series in Operations Research & Management Science, in: Wade D. Cook & Joe Zhu (ed.), Data Envelopment Analysis, edition 127, chapter 0, pages 91-118, Springer.
    • Handle: RePEc:spr:isochp:978-1-4899-8068-7_5
    DOI: 10.1007/978-1-4899-8068-7_5
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    Cited by:

    1. Saeedi, Hamid & Behdani, Behzad & Wiegmans, Bart & Zuidwijk, Rob, 2019. "Assessing the technical efficiency of intermodal freight transport chains using a modified network DEA approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 66-86.

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