A network DEA approach for series multi-stage processes. (June 2016) - Despotis, Dimitris K.
Abstract: We present in this paper a general network DEA approach to deal with efficiency assessments in multi-stage processes. Our approach complies with the composition paradigm, where the efficiencies of the stages are estimated first and the overall efficiency of the system is obtained ex post. We use multi-objective programming as modeling framework. This provides us the means to assess unique and unbiased efficiency scores and, if required, to drive the efficiency assessments effectively in line with specific priorities given to the stages. A direct comparison with the multiplicative decomposition approach on data drawn from the literature brings into light the advantages of our method and some critical points that one should be concerned about when using the multiplicative efficiency decomposition. Highlights: We deal with general series multi-stage processes. Our approach secures the uniqueness of the efficiency scores. The assessments are unbiased, free of inherent and implicit priorities to the stages.