Network Data Envelopment Analysis

This book presents the underlying theory, model development, and applications of network Data Envelopment Analysis (DEA) in a systematic way. The field of network DEA extends and complements conventional DEA by considering not only inputs and outputs when measuring system efficiency, but also the internal structure of the system being analyzed. By analyzing the efficiency of individual internal components, and more particularly by studying the effects of relationships among components which are modeled and implemented by means of various network structures, the 'network DEA' approach is able to help identify and manage the specific components that contribute inefficiencies into the overall systems. This relatively new approach comprises an important analytical tool based on mathematical programming techniques, with valuable implications to production and operations management. The existing models for measuring the efficiency of systems of specific network structures are also discussed, and the relationships between the system and component efficiencies are explored. This book should be able to inspire new research and new applications based on the current state of the art.

Performance evaluation is an important task in management, and is needed to (i) better understand the past accomplishments of an organization and (ii) plan for its future development. However, this task becomes rather challenging when multiple performance metrics are involved. DEA is a powerful tool to cope with such issues. For systems or operations composed of interrelated processes, managers need to know how the performances of the various processes evaluated and how they are aggregated to form the overall performance of the system. This book provides an advanced exposition on performance evaluation of systems with network structures. It explores the network nature of most production and operation systems, and explains why network analyses are necessary.


Chiang Kao is a University Chair Professor of Industrial and Information Management at National Cheng Kung University in Taiwan. He received his MS in Operations Research and PhD in Forest Management from Oregon State University, and did post-doctoral research in Economics also at Oregon State University. After joining Cheng Kung University, he has taken sabbatical leaves at Purdue University, Aachen University of Technology (Germany), INSEAD and University of Paul Sabatier (France), and University of Bologna (Italy). He has also been hired by the Computer Science Department of Southwest Texas State University.

Professor Kao has also held administrative posts at Cheng Kung University, including Chairman of Department of Industrial and Information Management, Dean of College of Management, and President of the University. He has published more than fifty papers on DEA in international journals. Of which, twenty are related to network DEA. Currently, he serves as a member of the Editorial Board for European Journal of Operational Research and an Associate Editor for Omega.

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