TWO-DIMENSIONAL REPRESENTATION FOR TWO-STAGE NETWORK DEA MODELS

Abstract

We propose two-dimensional representations for the efficient frontier for two different Network DEA (NDEA) models. Both representations follow a previous study that developed a generalization of the two-dimensional representation method for the classic DEA using a new form of linearization. The graphical representation of the efficient frontier allows managers and decision-makers unfamiliar with linear programming and DEA to understand the results obtained simply and clearly. In this study, we can obtain graphs that provide information about the efficiencies of each DMU. Furthermore, for the NDEA with an efficiency decomposition approach, it is possible to obtain a graph to evaluate the technical efficiency for each stage, as well as for the overall efficiency. The NDEA model based on efficiency composition only produces one graph. However, this unique representation shows the stage-level and the overall process level information within the same graph.