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Network DEA II

In: Data Envelopment Analysis

Author

Listed:
  • Rolf Färe

    (Oregon State University)

  • Shawna Grosskopf

    (Oregon State University
    CERE)

  • Gerald Whittaker

    (USDA)

Abstract

The original DEA model by Charnes et al. (Eur. J. Oper. Res. 2:429–444, 1978) is set to analyze production as a black box, i.e., there is no information about the processes inside. Network DEA was proposed for analysis of the contents of the black box. This theory allows the researcher to model processes within the black box by formulating sub-technology DEA models. The interaction of sub-technology DEA models preserves the DEA structure, and the network model can therefore be solved using linear programming. This chapter discusses network DEA models, both static and dynamic. The discussion also explores various useful objective functions that can be applied to the models to find the optimal allocation of resources for processes within the black box that are normally invisible to DEA.

Suggested Citation

  • Rolf Färe & Shawna Grosskopf & Gerald Whittaker, 2014. "Network DEA II," International Series in Operations Research & Management Science, in: Wade D. Cook & Joe Zhu (ed.), Data Envelopment Analysis, edition 127, chapter 0, pages 307-327, Springer.
    • Handle: RePEc:spr:isochp:978-1-4899-8068-7_14
    DOI: 10.1007/978-1-4899-8068-7_14
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