Portion Reduction Procedure in the Two-Stage Network DEA

Data Envelopment Analysis (DEA) can be applied to a net- work structure systems. Considering two-stage network, this paper im- proves a leader-follower structure. Likewise, it is not possible to reduce the production of undesirable outputs without any cost. The motiva- tion of this study is handling a fair treatment of the undesirable outputs in leader-follower structure. In the presence of the additional inputs in the second stage, this approach searches the proportional abatement in desirable and undesirable factors. Besides, it focuses on the less sacri- ce of the desirable products. Moreover, the theoretical contributions of the proposed model have been illustrated in 13 poultry industry and 25 power plants in Iran.