Article ID: | iaor201527030 |
Volume: | 56 |
Issue: | 6 |
Start Page Number: | 122 |
End Page Number: | 132 |
Publication Date: | Oct 2015 |
Journal: | Omega |
Authors: | Huo Jiazhen, Chen Yao, Du Juan |
Keywords: | statistics: data envelopment analysis, networks |
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.