Assessing Dynamic Efficiency of Machine-made Carpet Industry by Network DEA Technique

The results of dynamic efficiency evaluation not only help managers to realize their business' position in competitive market, but also enable them to compare current company’s performance with previous periods and do strategic planning properly. For doing so, network data envelopment analysis is a logical approach. Hence, the main objective of this illustration is to measure dynamic efficiency by means of network data envelopment analysis technique. Although different approaches in network DEA are introduced recently, the need for a comprehensive methodology in this area is remained because of the defects of previous methodologies. Consequently, a novel approach based on multi-objective optimization is introduced in this paper in order to measure the efficiency of a network structure. Finally, the case of Machine Made Carpet Industry (MMCI) is used and the dynamic performance of MMCI's companies in the period of four years is measured. Efficiency results of case data showed that the methodology proposed in this paper is able to eliminate defects of previous approaches and evaluate both total and annual efficiency simultaneously