Performance evaluation and specifying of Return to scale in network DEA

Document Type : Original Paper

Authors

1 Department of Mathematics, Central Tehran Branch, Islamic Azad University, Tehran, Iran

2 Department of Mathematics, Science and Research Branch, Islamic Azad University Tehran, Iran

3 Department of Industrial Management, Economic and Management Faculty, Shiraz Branch, Islamic Azad University, Shiraz, Iran

Abstract

Although Data envelopment analysis is a powerful technique for evaluation of decision making units with multiple inputs and outputs, internal activities are neglected and each unit treats as "black box" by considering only initial input and output in the basic DEA models. However, in this paper, a network DEA model for multi stages units was designed as a tool for considering the importance of internal relations. At first a new production possibility set was defined for two-stage units and introduced a new method for evaluation of two-stage units. Since, one of the most important issues in economical decision makings is RTS, a new algorithm for specify the RTS in two-stage units was presented by using of the new PPS, and then the proposed algorithm on empirical study was applied and the final results were analyzed.

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Volume 10, Issue 2
December 2020
Pages 309-340
  • Receive Date: 25 May 2019
  • Revise Date: 03 May 2020
  • Accept Date: 23 May 2020
  • First Publish Date: 21 December 2020