Two-stage Data Envelopment Analysis (DEA) Efficiency for Decision Making Units (DMUs) with Bounded Data

Data Envelopment Analysis (DEA) has been recognized as an excellent method for analyzing performance and modeling organizations and operational processes, particularly when market prices are unavailable. In some situations (in real applications) of DEA applications, there are Decision Making Units (DMUs) which have two-stage structure. In the previous two-stage models have been assumed that all inputs and outputs of DMUs are known exactly and however this assumption may not be true (i.e. some or all of inputs and outputs may be bounded). This paper proposes a method to determine efficiency of two-stage DMUs with bounded inputs and outputs and illustrates the proposed method using an example.