DEA for non-homogenous parallel networks |
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Institution: | 1. School of Management, Nanjing University of Posts and Telecommunications, 9 Wenyuan Road, Nanjing 210023, China;2. College of Auditing and Evaluation, Nanjing Audit University, 86 Yushan Road west, Nanjing 211815, China;2. Guanghua School of Management, Peking University, China;3. Lee Business School, University of Nevada Las Vegas, 4505 Maryland Parkway, Box 456009, Las Vegas, NV, 89154, USA |
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Abstract: | In practice, systems are often composed of a group of sub-units. Each sub-unit has a set of performance metrics that are classified as inputs and outputs in data envelopment analysis (DEA). Conventional DEA views such a system as a “black-box”, other DEA-based models are developed to investigate the inner structure, either with a serial structure where components are connected by intermediate products, or with a parallel system under the key assumption that all sub-units are associated with the same type of inputs and outputs (in differing amounts) without the links. In many applications, however, this property of identical input/output factors may not hold. For example, factories may have various manufacturing lines whose inputs and outputs differ from one another. The current paper proposes a series of DEA models to accommodate settings where non-homogenous sub-units operate in parallel network structures with intermediate measures or links. Both the overall performance of the entire parallel network system and efficiency decomposition for each sub-unit can be evaluated through our method. |
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Keywords: | Data envelopment analysis (DEA) Efficiency Network Non-homogeneous sub-units |
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