Multi-period efficiency and Malmquist productivity index in two-stage production systems |
| |
Authors: | Chiang Kao Shiuh-Nan Hwang |
| |
Institution: | 1. Department of Industrial and Information Management, National Cheng Kung University, Tainan, Taiwan, ROC;2. Department of Business Administration, Min Chuan University, Taipei, Taiwan, ROC |
| |
Abstract: | Conventional two-stage data envelopment analysis (DEA) models measure the overall performance of a production system composed of two stages (processes) in a specified period of time, where variations in different periods are ignored. This paper takes the operations of individual periods into account to develop a multi-period two-stage DEA model, which is able to measure the overall and period efficiencies at the same time, with the former expressed as a weighted average of the latter. Since the efficiency of a two-stage system in a period is the product of the two process efficiencies, the overall efficiency of a decision making unit (DMU) in the specified period of time can be decomposed into the process efficiency of each period. Based on this decomposition, the sources of inefficiency in a DMU can be identified. The efficiencies measured from the model can also be used to calculate a common-weight global Malmquist productivity index (MPI) between two periods, in that the overall MPI is the product of the two process MPIs. The non-life insurance industry in Taiwan is used to verify the proposed model, and to explain why some companies performed unsatisfactorily in the specified period of time. |
| |
Keywords: | Data envelopment analysis Malmquist productivity index Efficiency Two-stage system Parallel system |
本文献已被 ScienceDirect 等数据库收录! |
|