Modeling and Efficiency Analysis in Dynamic Two-Stage Systems with DEA Approach

Document Type : Original Article

Author

Assistant Professor, Department of Management, School of Administrative Sciences and Economics, Vali Asr University (AJ) Rafsanjan, Kerman, Iran

Abstract

DEA is one of the most applicable methods of performance evaluation. In traditional models of DEA, the unit's internal structure and time effects are not considered. Network DEA models survey internal structure, but they are static and do not calculate dynamic efficiency. On the other hand, dynamic models consider the unit as a black box in each period. So, network and dynamic models are not adequate for the evaluation alone. However, the dynamic network DEA models have the advantages of both dynamic and network models. In this study considering a comprehensive dynamic two-stage structure, a dynamic network DEA was presented in both input-oriented and output-oriented, to calculate the optimum weight of input, output, intermediate, and overtime variables. Then using the calculated weight, the method of calculating dynamic network efficiency in each stage, period, and the whole structure was stated. The suggested model for the condition of variables return to scale was also developed and the efficiency relations were explained. In the suggested models, a unit is overall efficient only if it is efficient in all stages and periods. Finally, for the description and potential performance of the suggested models, the data was used from central branches of Keshavarzi bank and the efficiency results were compared in two conditions of CRS and VRS.

Keywords

References

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