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Modeling efficiency in the presence of multiple partial input to output processes

Author

Listed:
  • Wang Hong Li

    (School of Management University of Science and Technology of China)

  • Liang Liang

    (School of management University of Science and Technology of China)

  • Sonia Valeria Avilés-Sacoto

    (ITESM - Monterrey)

  • Raha Imanirad

    (Harvard University)

  • Wade D. Cook

    (York University)

  • Joe Zhu

    (Nanjing Audit University
    Worcester Polytechnic Institute)

Abstract

Data envelopment analysis (DEA) is a methodology used to measure the relative efficiencies of peer decision-making units (DMUs). In the original model, it is assumed that in a multiple input, multiple output setting, all members of the input bundle affect the entire output bundle. There are many situations, however, where this assumption does not hold. In a manufacturing setting, for example, packaging resources (inputs) only influence the production of those products that require packaging. This is referred as partial input-to-output interactions where the DEA model is based on the view of a DMU as a business unit consisting of a set of independent subunits, such that efficiency of the DMU can be defined as a weighted average of the efficiencies of those subunits. The current paper presents an extension to that methodology to allow for efficiency measurement in situations where there exist multiple procedures or processes for generating given output bundles. The proposed model is then applied to the problem of evaluating the efficiencies of a set of steel fabrication plants.

Suggested Citation

  • Wang Hong Li & Liang Liang & Sonia Valeria Avilés-Sacoto & Raha Imanirad & Wade D. Cook & Joe Zhu, 2017. "Modeling efficiency in the presence of multiple partial input to output processes," Annals of Operations Research, Springer, vol. 250(1), pages 235-248, March.
    • Handle: RePEc:spr:annopr:v:250:y:2017:i:1:d:10.1007_s10479-015-2006-2
    DOI: 10.1007/s10479-015-2006-2
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    References listed on IDEAS

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    Cited by:

    1. Xiang Ji & Jie Wu & Qingyuan Zhu & Jiasen Sun, 2019. "Using a hybrid heterogeneous DEA method to benchmark China’s sustainable urbanization: an empirical study," Annals of Operations Research, Springer, vol. 278(1), pages 281-335, July.
    2. Rita Shakouri & Maziar Salahi & Sohrab Kordrostami & Jie Wu, 2019. "Flexible measure in the presence of the partial input to output impacts process," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 29(3), pages 77-98.
    3. Zhu, Weiwei & Yu, Yu & Sun, Panpan, 2018. "Data envelopment analysis cross-like efficiency model for non-homogeneous decision-making units: The case of United States companies’ low-carbon investment to attain corporate sustainability," European Journal of Operational Research, Elsevier, vol. 269(1), pages 99-110.

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