A slack based network DEA model for generalized structures: An axiomatic approach

An axiomatic approach is used to develop a network DEA for any network structure.Interpretation of multiplier model, gives integrated pair of models like basic models.New model removes the pitfalls of efficiency targets in previous models.The advantages of the new model with other network models are shown in an application. Recently, network data envelopment analysis (Network DEA) models have been developed in order to assess decision making units (DMUs) regarding their internal structures. Each DMU consists of a network of related divisions, and each division takes over some part of the production process. Different models are represented in multiplier forms and envelopment forms, which each of them considers some aspects of assessments (such as preference weights of inputs/outputs and divisional efficiencies or efficient targets). However, these models are not necessarily dual equivalent forms as well as traditional DEA models. Also as will be shown in this paper, in some envelopment form models, the proposed efficiency targets are not practically applicable in some network structures. In this paper we offer a model using an axiomatic approach for a general network structure which does not have the pitfalls of efficient targets. Also an interpretation of its dual multiplier form is represented.