Two-stage Network Inverse Data Envelopment Analysis

Mohammad Reza Mozaffari


Using scientific methods is necessary for merging Decision-Making Units (DMUs), in organizations. Tools such as Data Envelopment Analysis (DEA) and network DEA (NDEA) are quite useful for merging units in two-stage network processes. In this paper, a two-stage network inverse DEA (InvDEA) process is proposed for merging university units and bank branches based on linear programming models. Prioritizing inputs and outputs and finding intermediate vectors in multi-stage networks is in general very crucial. Therefore, the two-stage network inverse DEA model is proposed for the purposes of this study. Finally, we have provided some applications of the proposed model in merging DMUs by prioritization of vectors using Shannon’s entropy, namely the mergers of 5 universities, 24 insurance companies, and 20 commercial banks.


DEA, Network DEA, Inverse DEA, Consolidation, Merger.


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