Two-stage network processes with shared resources and resources recovered from undesirable outputs

2016 ◽  
Vol 251 (1) ◽  
pp. 182-197 ◽  
Author(s):  
Jie Wu ◽  
Qingyuan Zhu ◽  
Xiang Ji ◽  
Junfei Chu ◽  
Liang Liang
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Monireh Zoriehhabib ◽  
Mohsen Rostamy-Malkhalifeh ◽  
Farhad Hosseinzadeh Lotfi

PurposeEach production unit is responsible for the protection of the environment. The restricted undesirable production effects lower environmental damage. This paper emphasizes a proportional reduction of the undesirable outputs, and it supports the growth of desirable outputs as much as possible as well. The two-stage proposed model not only considers the viewpoint of the managers to follow the environmental regulations but also it assigns some bounds on producing undesirable factors according to international environmental protocols. Additionally, the restricted bounds on the undesirable outputs, in both stages, enhance the discriminatory ability of the model.Design/methodology/approachTwo-stage network structure based on Data Envelopment Analysis (DEA) is applied as the main methodology for this paper. The advantages of the proposed model are appointed to assess the environmental units.FindingsComparing with the existing models, the proposed approach presents a new two-stage model to deal with the environmental issues. Furthermore, the discriminatory ability of the efficiency scores is improved. The distribution of this model is greater than the existing ones.Research limitations/implicationsThis paper is fully written, submitted and revised during limitations caused by coronavirus .Practical implicationsThe proposed method is employed in two different cases. The efficiency scores of 25 power plants and 13 poultry farms are determined. In fact, the undesirable outputs never meet zero in the process of production but they can be reduced. The results of this research support the effect of the undesirable factors' restriction on the reduction scenario. Both of the examples show that imposing the upper bounds for the undesirable products provide low-efficiency results in comparison with the existing model. On the other hand, the results cover the arguments of sustainability in the evaluation of environmental efficiency.Originality/valueIn the production process, desirable outputs and undesirable factors are produced jointly so undesirable factors never meet zero. This paper develops a new two-stage method to reduce the undesirable outputs at each stage. First, the model confirms the reduction of undesirable outputs. Second, this model imposes restrictions on intermediate and final undesirable outputs according to environmental rights and the concerns of the managers. The model increases the discrimination of the efficiency assessment of real-life two-stage environmental systems as well. Then it focuses on the production of desirable outputs. The new objective function is defined according to the aim of the proposed model that not only declares better efficiency decomposition to the individual system but also the efficiency score is evaluated for each stage.


Measurement ◽  
2014 ◽  
Vol 48 ◽  
pp. 109-118 ◽  
Author(s):  
Mahnaz Maghbouli ◽  
Alireza Amirteimoori ◽  
Sohrab Kordrostami

2016 ◽  
Vol 16 (04) ◽  
pp. 1043-1068 ◽  
Author(s):  
Wei-Hsin Kong ◽  
Tsu-Tan Fu ◽  
Ming-Miin Yu

This paper develops a range directional distance data envelopment analysis (DEA) model to simultaneously deal with the problems of negative data and undesirable outputs in the study of performance measurement with two-stage DEA. We report on the development of this model to handle both positive and negative data in a DEA framework and accommodate the problem of undesirable intermediate outputs in the first stage of operational processes. Unlike previous two-stage DEA models we allow for a nonuniform abatement factor imposing on stage 1’ production technology. Such a model is then applied to evaluate Taiwanese bank efficiencies both at the operational stage and profitability stage in banking activities based on a data set consisting of 35 domestic banks in Taiwan in the period 2007. The results indicate that, by the range directional two-stage data envelopment analysis model, the operational efficiency was smaller than the profitability efficiency. Many banks generated too many performing loans in which independent banks should reduce more performing loans than financial holding company subsidiary banks. Both the ratio of investments to loans and the ratio of nonperforming loans to performing loans did not have significant contributions to the efficiency. This paper is able to provide information for bank operators and researchers on the managerial and strategic implications of how negative data and undesirable outputs affect efficiency and how to measure efficiency appropriately.


2018 ◽  
Vol 27 (4) ◽  
pp. 2211-2229
Author(s):  
Jianfeng Ma ◽  
Linan Qi ◽  
Lizhi Deng

2017 ◽  
Vol 278 (1-2) ◽  
pp. 177-194 ◽  
Author(s):  
Weiwei Zhu ◽  
Qian Zhang ◽  
Haiqing Wang

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