Cross-efficiency evaluation and improvement in two-stage network data envelopment analysis

In Network Data Envelopment Analysis models, by considering the internal structure of production units rather than a simple black-box, more inefficiency sources are identified. The objective of this paper is to assess and improve the performance of Decision Making Units with a two-stage network using cross-efficiency approach. The main contributions of this study include; first, a new benevolent method in cross-efficiency evaluation of two-stage network is proposed. Second, we propose a method for setting inputs and outputs target to improve the cross-evaluations by changing inputs of the first stage and outputs of the second stage, simultaneously. A case study validates the discussions.

Automated summary

In this study, Network Data Envelopment Analysis models are used to identify more sources of inefficiency by considering the internal structure of production units. The aim is to assess and improve the performance of Decision Making Units using a two-stage network and a cross-efficiency approach. The main contributions include a new benevolent method in cross-efficiency evaluation and a method for setting inputs and outputs target to improve cross-evaluations.