2006
DOI: 10.1007/s10479-006-0025-8
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An efficiency measurement framework for multi-stage production systems

Abstract: We develop an efficiency measurement framework for systems composed of two subsystems arranged in series that simultaneously computes the efficiency of the aggregate system and each subsystem. Our approach expands the technology sets of each subsystem by allowing each to acquire resources from the other in exchange for delivery of the appropriate (intermediate or final) product, and to form composites from both subsystems. Managers of each subsystem will not agree to "vertical integration" initiatives unless e… Show more

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Cited by 71 publications
(20 citation statements)
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“…Solely within the activity analysis tradition, that is at the basis of the non‐parametric approach, there may well be a variety of inroads to close the apparent gap between economists and engineers 12 . One can mention, among others, the use of networks in non‐parametric models (see, e.g., Färe and Grosskopf (2000)) where the representation of the product flow is consistent with the industrial engineering literature on multi‐stage systems (see Golany, Hackman and Passy (2006)), the use of Petri nets in modelling production (e.g., Bonanno (1995)), etc. A recent attempt to bridge the gap between both fields is the book by Hackman (2008).…”
Section: Discussionmentioning
confidence: 71%
“…Solely within the activity analysis tradition, that is at the basis of the non‐parametric approach, there may well be a variety of inroads to close the apparent gap between economists and engineers 12 . One can mention, among others, the use of networks in non‐parametric models (see, e.g., Färe and Grosskopf (2000)) where the representation of the product flow is consistent with the industrial engineering literature on multi‐stage systems (see Golany, Hackman and Passy (2006)), the use of Petri nets in modelling production (e.g., Bonanno (1995)), etc. A recent attempt to bridge the gap between both fields is the book by Hackman (2008).…”
Section: Discussionmentioning
confidence: 71%
“…Network DEA models were proposed to overcome this limitation. Modeling such network structures has been critically debated (Cook, Zhu, Bi, & Yang, 2010;Färe & Grosskopf, 1996;Golany, Hackman, & Passy, 2006;Chiang Kao, 2009;Chiang Kao, 2014;Lewis & Sexton, 2004;Paradi et al, 2011;Sexton & Lewis, 2003;Kaoru Tone & Tsutsui, 2010).…”
Section: Background On Network and Dynamic Dea Modelsmentioning
confidence: 99%
“…One of the earliest and simplest network structures is the two-stage DEA model in which two serially connected productive processes or sub-structures are assumed to work together in the main DMU. In other words, DMUs are formed by two consecutive stages where the first stage outputs become the second stage inputs (Golany et al, 2006). This consists of a particular case of the multi-stage network structure (Färe (1991); (Färe & Grosskopf, 1996;Färe & Grosskopf, 1997;Färe & Whittaker, 1995;Kaoru Tone & Tsutsui, 2010, 2014.…”
Section: Background On Network and Dynamic Dea Modelsmentioning
confidence: 99%
“…Their model applied to DMUs that consisted of a network of individual organizations, some of which consume resources produced by other individual organizations and some of which produce resources consumed by other individual organizations. Golany et al [13] developed an efficiency measurement framework for systems composed of two subsystems arranged in series that simultaneously computed the efficiency of the aggregate system and each subsystem. Their approach expanded the technology sets of each subsystem by allowing each to acquire resources from the other in exchange for delivery of the appropriate (intermediate or final) product, and to form composites from both subsystems.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Now, using the crisp constraints (11), (12), (13), and (16), and also the constraints related to the intermediate measures, Model (2) can be written as follows:…”
Section: Fuzzy Network Sbm (Nsbm)mentioning
confidence: 99%