Estimating ‎C‎apacity Utilization in Two-Stage Production Systems: A Data Envelopment Analysis Approach

The current study investigates performance in two-stage production systems through the measurement of capacity utilization (CU). In short-run, the degree of capacity utilization depends on the ability of decision making units to utilize fixed production factors. To develop this indicator in two-stage production processes, a modified SBM network DEA model is proposed. A numerical example is also presented to point out the applicability and effectiveness of current model.

Keywords:

Network Data Envelopment Analysis , Capacity Utilization , Intermediate product , Two-stage production system