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Equivalent solutions to additive two-stage network data envelopment analysis
Authors:Linyan Zhang  Yao Chen
Affiliation:1. International Center for Auditing and Evaluation, Nanjing Audit University, Nanjing 211815, PR China;2. Manning School of Business, University of Massachusetts at Lowell, Lowell, MA 01845, USA
Abstract:In the additive approach of two-stage network data envelopment analysis (DEA), the non-linear DEA model is transformed into a parametric linear model and then solved by computing a series of linear programs. Lim and Zhu (2013; Integrated data envelopment analysis: Global vs. local optimum.European Journal of Operational Research, 229(1), 276–278) and Ang and Chen (2016; Pitfalls of decomposition weights in the additive multi-stage DEA model. Omega, 58, 139–153) propose two parametric linear approaches to solve additive two-stage network DEA model. The current study shows that the two approaches are equivalent and use the same parameter in searching for the global optimal solution.
Keywords:Data envelopment analysis (DEA)  Network  Two-stage  Additive model  Parametric
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