Evaluating the profit efficiency of two-stage processes with undesirable outputs

The management of production processes in order to reduce costs and increase revenue and profits is one of important and essential factors to achieve success in economic affairs and then the satisfaction of managers and customers. In this regard, using an appropriate approach to evaluate the performance and to manage complex systems with network structure is important and necessary. Network Data Envelopment Analysis (NDEA) is a suitable and effective non parametric programming method for assessing the performance of decision-making units with multiple inputs and outputs, as well as taking into account internal processes. In this research, based on the DEA technique, considering the appropriate role for intermediate factors of processes as well as the weak disposability for undesirable factors, the efficiency of systems with a two - stage network structure in the presence of undesirable factors is evaluated. To further explain and analyze the proposed method, a case study is also examined.