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: In this paper, the authors present a survey and classification of two-stage DEA models and point out the significance of these models for the decision maker of a supply chain, and present some concluding remarks and a number of policy implications and opportunities for decision maker.
90 citations
TL;DR: In this paper, a Slacks-Based Measure Data Envelopment Analysis (SBM-DEA) model was proposed to estimate the potential CO2 emission reduction by ports in Korea.
Abstract: Numerous studies have analyzed the productivity, efficiency, and competitiveness of ports. However, empirical studies on the environmental efficiency of ports have not yet been carried out, since all previous studies have not considered the undesirable outputs that ports generate, for instance, CO2 emissions. To fill the gap in the literature, the objective of this study is to estimate environmental efficiency of ports. More specifically, this paper intends to analyze environmental efficiency of ports in Korea and to estimate the potential CO2 emission reduction by ports in the country. The main methodology is a Slacks-Based Measure Data Envelopment Analysis (SBM-DEA) model. Data, on labor, capital, and energy used as major inputs of the port sector; on cargo tonnage and vessel tonnage handled as desirable outputs; and on CO2 emissions as an undesirable output, were collected and estimated. The SBM-DEA model was able to provide us with a more comprehensive efficiency of combining economic performance and ...
90 citations
Cites background from "Two-Stage DEA: An Application to Ma..."
...One notable new development of the DEA is the two-stage DEA (Sexton and Lewis 2003, 227–249) and its expanded SBM network model (Tone and Tsutsui 2009, 243–252), where the authors attempted to show how different production functions in stages can be captured overall or by department or phase, for…...
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TL;DR: In this article, the authors applied a three-stage DEA model to the Spanish Professional Football League and found that the technical inefficiency of the defence is greater than that of the offence, both being caused by the poor management of players' abilities and by the football team's size.
Abstract: In this paper, we apply a three-stage-DEA model to the Spanish Professional Football League, which means separating the teams’ economic behaviour into three components: operating efficiency—of the offence and defence—athletic or operating effectiveness, and social effectiveness. The results showed that the technical inefficiency of the defence is greater than that of the offence, both being caused by aspects linked to the poor management of players’ abilities and by the football team’s size. Teams showed a favourable evolution of their offensive and defensive efficiency during the 2004/2005 season and to a lesser extent in the season before. The point system assigned by the professional football league regulations evaluates the teams’ athletic effectiveness, but we detected that the teams with the most experience perform athletically in a more effective manner. Their social effectiveness is strongly related to the level of play in itself and to factors linked to their PFL ranking: participation in international competitions for important football teams; or the struggle of minor football teams to stay in the first division.
88 citations
Cites background or methods from "Two-Stage DEA: An Application to Ma..."
...The connection established between the economic concepts that are going to be examined leads us to enlarge on the criteria used by Sexton and Lewis (2003) in their analysis of baseball teams by applying a three-stage-DEA....
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...But, if we take up the affirmation made by Sexton and Lewis (2003, p. 227) for baseball, these studies treat each football team as if it were a black box, taking into consideration only the inputs that it uses and the outputs that it produces....
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TL;DR: The results show that the proposed model is more effective than the black box DEA model in calculating efficiency of both two-stages and in identifying the sources of the inefficiency of overall sustainable manufacturing processes.
Abstract: In recent years, performance evaluation of sustainable operations has attracted a significant amount of research. The current paper seeks to evaluate sustainable manufacturing performance when wastes are recycled and re-used. For example, a typical sustainable process in iron and steel making involves in the first stage forging iron and steel products and in the second stage disposing the wastes. The sustainable manufacturing process then re-uses the recycled waste water in the first stage production. It is important that performance metrics include the operations related to recycling and re-use of the wastes. In a simplified view, such a sustainable operation is a two-stage process. Due to the ability of incorporating multiple performance metrics, data envelopment analysis (DEA) is used to develop our evaluation approach. While traditional DEA treats such two-stage manufacturing process as a black box by ignoring the internal conflicts and cooperation among multiple manufacturing stages, this paper proposes a modified two-stage network DEA model that deals with good and undesirable outputs from the sustainable manufacturing process. A Nash bargaining game between efficiencies of two-stages is proposed to produce unique and fair efficiency decomposition for the two-stage sustainable manufacturing process. The modified two-stage network DEA model is applied to wastewater recycling and reusing in a set of iron and steel makers in China. The results show that the proposed model is more effective than the black box DEA model in calculating efficiency of both two-stages and in identifying the sources of the inefficiency of overall sustainable manufacturing processes.
87 citations
01 Sep 2010
TL;DR: This study presents a four-phase fuzzy DEA framework based on the theory of displaced ideal, where the ideal and nadir DMUs are constructed and used as reference points to evaluate a set of information technology investment strategies based on their Euclidean distance.
Abstract: Data envelopment analysis (DEA) is a widely used mathematical programming approach for evaluating the relative efficiency of decision making units (DMUs) in organizations. Crisp input and output data are fundamentally indispensable in traditional DEA evaluation process. However, the input and output data in real-world problems are often imprecise or ambiguous. In this study, we present a four-phase fuzzy DEA framework based on the theory of displaced ideal. Two hypothetical DMUs called the ideal and nadir DMUs are constructed and used as reference points to evaluate a set of information technology (IT) investment strategies based on their Euclidean distance from these reference points. The best relative efficiency of the fuzzy ideal DMU and the worst relative efficiency of the fuzzy nadir DMU are determined and combined to rank the DMUs. A numerical example is presented to demonstrate the applicability of the proposed framework and exhibit the efficacy of the procedures and algorithms.
84 citations
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