Two-Stage DEA: An Application to Major League Baseball
01 Apr 2003-Journal of Productivity Analysis (Kluwer Academic Publishers)-Vol. 19, Iss: 2, pp 227-249
TL;DR: In this article, the authors use DEA to model DMUs that produce in two stages, with output from the first stage becoming input to the second stage, and apply the model to Major League Baseball, demonstrating its advantages over a standard DEA model.
Abstract: We show how to use DEA to model DMUs that produce in two stages, with output from the first stage becoming input to the second stage. Our model allows for any orientation or scale assumption. We apply the model to Major League Baseball, demonstrating its advantages over a standard DEA model. Our model detects inefficiencies that standard DEA models miss, and it can allow for resource consumption that the standard DEA model counts towards inefficiency. Additionally, our model distinguishes inefficiency in the first stage from that in the second stage, allowing managers to target inefficient stages of the production process.
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TL;DR: Based on the Data Envelopment Analysis (DEA) model, inputs consist of four factors: the number of deaths, victims, frequency of occurrence, and economic losses caused by meteorological disasters as discussed by the authors .
Abstract: The “Belt and Road” initiative proposed by China has received much attention from the international community. Natural disasters along the route have posed considerable challenges to the “Belt and Road” economic construction. Southeast Asia, as the main thoroughfare of the Maritime Silk Road, always suffers from floods. It is necessary to evaluate flood risk to enhance disaster emergency management. Based on the Data Envelopment Analysis (DEA) model, inputs consist of four factors: the number of deaths, victims, frequency of occurrence, and economic losses caused by meteorological disasters. To study the vulnerability to flood disasters in Southeast Asian countries, the four factors caused by flood disasters were taken as outputs, respectively. The relative efficiency values of Laos, Malaysia and Cambodia exceed 0.8. They are most vulnerable to floods. The following four countries, Thailand, Myanmar, Indonesia, and the Philippines, are also vulnerable to flood disasters. The vulnerability of Vietnam is relatively lower than the others. In brief, the risk of flood disasters in Southeast Asia is high. Risk assessment for Southeast Asia is essential to ensure the implementation of the “Belt and Road” initiative.
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TL;DR: In this article, the authors developed several DEA-based models for characterizing and measuring multistage supply chain efficiencies with the consideration of the intermediate measures, and illustrated the models in a three-stage supply chain context which can represent different relationships between the supplier, manufacturer and retailer when they are treated as in different supply chain structures.
Abstract: In order to evaluate the multistage supply chain efficiency, an appropriate performance evaluation system is importantly required. In practice, a representative multistage supply chain has three members composing a supplier-manufacturer-retailer structure, and has intermediate measures connecting these three supply chain members. Existing Data Envelopment Analysis (DEA) models have difficulties in measuring these kinds of supply chain efficiencies directly. In this paper, we develop several DEA based models for characterizing and measuring these multistage supply chain efficiencies with the consideration of the intermediate measures. We illustrate the models in a three-stage supply chain context which can represent different relationships between the supplier, manufacturer and retailer when they are treated as in different supply chain structures: i) the non-cooperative, ii) the partial-cooperative, and iii) the cooperative supply chain structure. Moreover, the general DEA frameworks for multistage supply chain models are proposed and these models are demonstrated with an illustrative example.
01 Jan 2011
TL;DR: In this paper, a relational DEA model was proposed to evaluate the overall efficiency of two-stage production systems with shared inputs, and the proposed model not only evaluated the efficiency of the whole process, but also provided the efficiency for each of the two sub-processes.
Abstract: As a non-parametric technique in Operations Research and Economics, Data Envelopment Analysis (DEA) evaluates
the relative efficiency of peer production systems or decision making units (DMUs) that have multiple inputs and
outputs. In recent years, a great number of DEA studies have focused on two-stage production systems in series,
where all outputs from the first stage are intermediate products that make up the inputs to the second stage. There are,
of course, other types of two-stage processes that the inputs of the system can be freely allocated among two stages.
For this type of two-stage production system, the conventional two-stage DEA models have some limitations e.g.
efficiency formulation and linearizing transformation. In this paper, we introduce a relational DEA model,
considering series relationship among two stages, to measure the overall efficiency of two-stage production systems
with shared inputs. The linearity of DEA models is preserved in our model. The proposed DEA model not only
evaluates the efficiency of the whole process, but also it provides the efficiency for each of the two sub-processes. A
numerical example of US commercial banks from literature is used to clarify the model.
TL;DR: In this article , the authors examine the variation in the implementation of e-participation across countries, and how selected attributes of these countries can explain such variation, as well as the determinants of efficiency at each stage of conversion.
Abstract: We examine the variation in the implementation of e-participation across countries, and how selected attributes of these countries can explain such variation. We model how countries convert their technology infrastructure into online service maturity, and the latter into e-participation initiatives, as well as the determinants of efficiency at each stage of conversion. By applying Data Envelopment Analysis (DEA) to data from the United Nations E-Government Survey 2018 and the Worldwide Governance Indicators (WGI) project of the World Bank, we compare the efficiency of countries in the two stages of conversion: technology infrastructure into online services, and the latter into e-participation. Using regression modeling, we examine how the efficiency of the two stages of conversion depends on human capital and governance respectively. We find that the development of e-participation, given a certain level of online service maturity, depends on the stability of governance and the quality of regulation. Upstream, how efficiently technology infrastructure is converted into online service maturity depends upon the level of human capital available in a country. We identify countries that extract most value from the infrastructure they are endowed with, making them worthy of emulation by other countries, especially those with limited infrastructure.
References
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TL;DR: In this paper, a non-parametric productivity measure that explicitly incorporates intermediate products is proposed, which is based on the Productivity Index (PII) and employs a nonparametric approach to measure productivity.
462 citations
TL;DR: A nonparametric, linear programming, frontier procedure for obtaining a measure of managerial efficiency that controls for exogenous features of the operating environment is introduced.
Abstract: The ability of a production unit to transform inputs into outputs is influenced by its technical efficiency and external operating environment. This paper introduces a nonparametric, linear programming, frontier procedure for obtaining a measure of managerial efficiency that controls for exogenous features of the operating environment. The approach also provides statistical tests of the effects of external conditions on the efficient use of each individual input (for an input oriented model) or for each individual output (for an output oriented model). The procedure is illustrated for a sample of nursing homes.
441 citations
"Two-Stage DEA: An Application to Ma..." refers methods in this paper
...Sexton and Silkman (2000) and Fried et al. (1999) present similar but distinct approaches to dealing with site characteristics in standard DEA models....
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TL;DR: In this article, the authors introduce a frontier model for productivity measurement that explicitly recognizes that some inputs are produced and consumed within the production technology, where intermediate inputs may also be final output.
Abstract: The purpose of this paper is to introduce a frontier model for productivity measurement that explicitly recognizes that some inputs are produced and consumed within the production technology. Here we differ from Koopmans (1951) by assuming that the intermediate inputs may also be final output. This assumption is in line with current international trade theory, where intermediate inputs are tradable. Our model consists of two production units that are interconnected in a network to form a production technology. The productivity measure employed here is the so-called Malmquist productivity index. This index consists of ratios of distance functions. Here these distance functions are defined on the network technology and they are computed using linear programming techniques.
439 citations
TL;DR: It is found that the decomposition of production into subproduction processes reduces the dimensions of problem specification, with the effect that a larger number of variables may be usefully included in the model.
Abstract: Agricultural production is often characterised by multiple inputs and multiple outputs to multiple production processes. Where an output from one process is used as an input to another, this output is called an intermediate product. This is a common situation when a farm produces both crops and livestock. The analysis of production efficiency is important for the evaluation of agricultural policy, but until recently, no methods have explicitly included intermediate products. This study applies a non-parametric technique of efficiency measurement which includes intermediate products. The data set is a sample of dairy farms drawn using a complex survey design. The use of non-parametric efficiency measurement and the subsequent application of bootstrapping and kernel density estimation to the results allow inferences to be drawn concerning the whole population from which the sample was drawn. We find that the decomposition of production into subproduction processes reduces the dimensions of problem specification, with the effect that a larger number of variables may be usefully included in the model.
145 citations