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657. The pitfall of virtual exterior projection points in unified Non-Radial Two-Stage Network DEA and its duality: An Empirical Study on Railway industry in Europe
Invited abstract in session WB-48: DEA applications in transportation, stream Data Envelopment Analysis and its Application.
Wednesday, 10:30-12:00Room: 60 (building: 324)
Authors (first author is the speaker)
| 1. | Chixiao Lu
|
| Surrey Business school, University of Surrey | |
| 2. | Ali Emrouznejad
|
| Surrey Business School, University of Surrey |
Abstract
As a natural monopoly transportation approach, the railway service has gained increasing attention from the European Union. Hence, a comprehensive performance analysis system is needed to urge infrastructure managers to reduce costs. Two-stage network (2SN) Data Envelopment Analysis (DEA) is widely used as a productive efficiency analysis technique in railway industries’ managerial decision-making processes. However, the conventional 2SN DEA models are vulnerable to biased outcomes when the generated virtual projection point is an exterior point. Specifically, given the inputs-outputs Production Possibility Set (PPS) in a 2SN system is unknown, the conventional approach identifies the virtual exterior projection point by integrating the inputs-intermediates and intermediates-output PPSs. In this paper, unified non-radial graph models in both the slack-based scheme and the Russell-efficiency scheme are proposed to solve the issue of exterior projection points. We also apply the dual transformation to discuss the shadow price of inputs, outputs, and intermediates through the multiplier model. We apply the proposed novel approach to the dataset regarding European Railway industries. Our approach provides a comprehensive efficiency analysis from both Investment and Operations perspective. The adjusted projection points in our DEA model also provide an applicable benchmark to support the decision-making process.
Keywords
- Data Envelopment Analysis
- Transportation
- Efficiency Analysis
Status: accepted
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