Network DEA: A slacks-based measure approach

Traditional DEA models deal with measurements of relative efficiency of DMUs regarding multiple-inputs vs. multiple-outputs. One of the drawbacks of these models is the neglect of intermediate products or linking activities. After pointing out needs for inclusion of them in DEA models, we propose a slacks-based network DEA model that can deal with intermediate products. Using this model we can evaluate divisional efficiencies along with the overall efficiency of decision making units (DMUs).Data envelopment analysis, Network DEA, SBM, divisional efficiency, overall efficiency