Two-Stage Network DEA Model Under Interval Data

The main goal of this paper is to propose interval network data envelopment analysis (INDEA) model for performance evaluation of network decision making units (DMUs) with two-stage network structure under data uncertainty. It should be explained that for dealing with uncertainty of data, an interval programming method as a popular uncertainty programming approach is applied. Also, to show the applicability of proposed model, INDEA approach is implemented for performance measurement and ranking of 10 insurance companies from Iranian insurance industry. Note that insurance companies are undoubtedly one of the most important pillars of the financial markets, whose great performance will drive the economy of the country. The empirical results indicate that the proposed INDEA is capable to be utilized to assess the performance of two-stage DMUs in the presence of interval data.

Keywords:

Network Data Envelopment Analysis , Two-Stage Structure , Interval Data , Uncertainty , Interval Programming.