A measure of the Luenberger productivity indicator In a two-stage network DEA in the presence of undesirable outputs

The main purpose of this paper is to investigate the effect of undesirable outputs on the evaluation of the performance of two-stage networked system systems with a series structure, when there is a discussion of the regression or progression of production systems over different periods of activity. Luenberger productivity indicator is one of the nonparametric methods in determining this.In this paper, in an axiomatic approach, a new production possibility set (PPS) is introduced in two-stage network DEA in the presence of undesirable outputs. Then, using this new technology, a directional distance function (DDF) introduces and we propose a method to remedy an infeasibility problem over hybrid periods of time. Then, a two-step algorithm based on the new models was presented for determining the Luenberger productivity indicator in a two-stage network with undesirable outputs. Finally, a simple example was used to illustrate applicability of the proposal algorithm.

Keywords:

Data Envelopment Analysis , Luenberger productivity indicator , two-stage network DEA , Undesirable outputs , Infeasibility , Directional Distance Function