Slacks-based network DEA

Abstract

Traditional DEA models deal with measurements of relative efficiency of DMUs regarding multiple-inputs versus multiple-outputs. One of the drawbacks of these models is the neglect of intermediate products or linking activities. After pointing out needs for inclusion of them to DEA models, we propose a slacks-based network DEA model that can deal with intermediate products formally. Using this model we can evaluate divisional efficiencies along with the overall efficiency of decision making units (DMUs).