Geodesic
Economies of scope in two-stage production systems: A data envelopment analysis approach
RAIRO - Operations Research - Recherche Opérationnelle, Tome 52 (2018) no. 2, pp. 335-349

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Traditional data envelopment analysis (DEA) models consider a production system as a black-box without taking into consideration its internal linked activities. In recent years, a number of DEA studies have been presented to estimate efficiency score of two-stage network production systems in which all outputs of the first stage (intermediate products) are used as inputs of the second stage to produce final outputs. This paper aims to develop a two-stage network DEA model to study economic notion of economies of scope (ES) between two products. It intends to determine profitability of joint production of two products by one firm. Numerical illustrations are presented to show applicability of proposed methods.

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DOI : 10.1051/ro/2017023
Classification : 90c11, 90c05, 90c90
Keywords: Network data envelopment analysis, Economies of scope, Intermediate product, Two-stage production system

Ahranjani, Leila Zeinalzadeh 1 ; Matin, Reza Kazemi 1 ; Saen, Reza Farzipoor 1

1 
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     author = {Ahranjani, Leila Zeinalzadeh and Matin, Reza Kazemi and Saen, Reza Farzipoor},
     title = {Economies of scope in two-stage production systems: {A} data envelopment analysis approach},
     journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
     pages = {335--349},
     publisher = {EDP-Sciences},
     volume = {52},
     number = {2},
     year = {2018},
     doi = {10.1051/ro/2017023},
     zbl = {1398.90044},
     mrnumber = {3817468},
     language = {en},
     url = {http://geodesic.mathdoc.fr/articles/10.1051/ro/2017023/}
}
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%A Matin, Reza Kazemi
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Ahranjani, Leila Zeinalzadeh; Matin, Reza Kazemi; Saen, Reza Farzipoor. Economies of scope in two-stage production systems: A data envelopment analysis approach. RAIRO - Operations Research - Recherche Opérationnelle, Tome 52 (2018) no. 2, pp. 335-349. doi: 10.1051/ro/2017023

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