Efficiency evaluation of production lines using maximal balance index

Efficiency evaluation of production lines using maximal balance index

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Article ID: iaor201525473
Volume: 13
Issue: 3
Start Page Number: 302
End Page Number: 317
Publication Date: Jul 2014
Journal: International Journal of Management and Decision Making
Authors: ,
Keywords: statistics: data envelopment analysis, manufacturing industries
Abstract:

Determining efficiency and ranking of production lines are important issues in operations management. In this paper, we calculate the efficiency of production lines using network data envelopment analysis (NDEA) model in the presence of desirable and undesirable outputs. However, in NDEA several production lines may become efficient which makes ranking impossible. For the first time, maximal balance index and NDEA are combined to rank production lines. A case study determines efficiency scores of seven Iranian factories. Case study shows advantage of our model over previous ones.

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