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Measuring the performance of two-stage production systems with shared inputs by data envelopment analysis

As a non-parametric technique in Operations Research and Economics, Data Envelopment Analysis (DEA) evaluates the relative efficiency of peer production systems or decision making units (DMUs) that have multiple inputs and outputs. In recent years, a great number of DEA studies have focused on two-...

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Main Authors: Ashrafi, Ali, Jaafar, Azmi, Lee, Lai Soon, Abu Bakar, Mohd Rizam
Format: Conference or Workshop Item
Language:English
Published: 2011
Online Access:http://psasir.upm.edu.my/id/eprint/21122/1/ID%2021122.pdf
http://psasir.upm.edu.my/id/eprint/21122/
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spelling my.upm.eprints.211222019-12-17T04:39:32Z http://psasir.upm.edu.my/id/eprint/21122/ Measuring the performance of two-stage production systems with shared inputs by data envelopment analysis Ashrafi, Ali Jaafar, Azmi Lee, Lai Soon Abu Bakar, Mohd Rizam As a non-parametric technique in Operations Research and Economics, Data Envelopment Analysis (DEA) evaluates the relative efficiency of peer production systems or decision making units (DMUs) that have multiple inputs and outputs. In recent years, a great number of DEA studies have focused on two-stage production systems in series, where all outputs from the first stage are intermediate products that make up the inputs to the second stage. There are, of course, other types of two-stage processes that the inputs of the system can be freely allocated among two stages. For this type of two-stage production system, the conventional two-stage DEA models have some limitations e.g. efficiency formulation and linearizing transformation. In this paper, we introduce a relational DEA model, considering series relationship among two stages, to measure the overall efficiency of two-stage production systems with shared inputs. The linearity of DEA models is preserved in our model. The proposed DEA model not only evaluates the efficiency of the whole process, but also it provides the efficiency for each of the two sub-processes. A numerical example of US commercial banks from literature is used to clarify the model. 2011 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/21122/1/ID%2021122.pdf Ashrafi, Ali and Jaafar, Azmi and Lee, Lai Soon and Abu Bakar, Mohd Rizam (2011) Measuring the performance of two-stage production systems with shared inputs by data envelopment analysis. In: 2nd International Conference on Business and Economic Research (2nd ICBER 2011), 14-16 Mar. 2011, Langkawi, Kedah, Malaysia. (pp. 1-7).
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description As a non-parametric technique in Operations Research and Economics, Data Envelopment Analysis (DEA) evaluates the relative efficiency of peer production systems or decision making units (DMUs) that have multiple inputs and outputs. In recent years, a great number of DEA studies have focused on two-stage production systems in series, where all outputs from the first stage are intermediate products that make up the inputs to the second stage. There are, of course, other types of two-stage processes that the inputs of the system can be freely allocated among two stages. For this type of two-stage production system, the conventional two-stage DEA models have some limitations e.g. efficiency formulation and linearizing transformation. In this paper, we introduce a relational DEA model, considering series relationship among two stages, to measure the overall efficiency of two-stage production systems with shared inputs. The linearity of DEA models is preserved in our model. The proposed DEA model not only evaluates the efficiency of the whole process, but also it provides the efficiency for each of the two sub-processes. A numerical example of US commercial banks from literature is used to clarify the model.
format Conference or Workshop Item
author Ashrafi, Ali
Jaafar, Azmi
Lee, Lai Soon
Abu Bakar, Mohd Rizam
spellingShingle Ashrafi, Ali
Jaafar, Azmi
Lee, Lai Soon
Abu Bakar, Mohd Rizam
Measuring the performance of two-stage production systems with shared inputs by data envelopment analysis
author_facet Ashrafi, Ali
Jaafar, Azmi
Lee, Lai Soon
Abu Bakar, Mohd Rizam
author_sort Ashrafi, Ali
title Measuring the performance of two-stage production systems with shared inputs by data envelopment analysis
title_short Measuring the performance of two-stage production systems with shared inputs by data envelopment analysis
title_full Measuring the performance of two-stage production systems with shared inputs by data envelopment analysis
title_fullStr Measuring the performance of two-stage production systems with shared inputs by data envelopment analysis
title_full_unstemmed Measuring the performance of two-stage production systems with shared inputs by data envelopment analysis
title_sort measuring the performance of two-stage production systems with shared inputs by data envelopment analysis
publishDate 2011
url http://psasir.upm.edu.my/id/eprint/21122/1/ID%2021122.pdf
http://psasir.upm.edu.my/id/eprint/21122/
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score 13.211869

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