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Equivalence in two-stage DEA approaches
Authors:Yao Chen  Liang Liang  Joe Zhu
Institution:1. College of Management, University of Massachusetts at Lowell, Lowell, MA 01845, USA;2. School of Business, University of Science and Technology of China, He Fei, An Hui Province 230026, PR China;3. Department of Management, Worcester Polytechnic Institute, Worcester, MA 01609, USA;4. Department of Industrial and Information Management, National Cheng Kung University, Tainan, Taiwan
Abstract:Data envelopment analysis (DEA) is a linear programming problem approach for evaluating the relative efficiency of peer decision making units (DMUs) that have multiple inputs and outputs. DMUs can have a two-stage structure where all the outputs from the first stage are the only inputs to the second stage, in addition to the inputs to the first stage and the outputs from the second stage. The outputs from the first stage to the second stage are called intermediate measures. This paper examines relations and equivalence between two existing DEA approaches that address measuring the performance of two-stage processes.
Keywords:Data envelopment analysis (DEA)  Efficiency  Intermediate measure  Two-stage
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