An Integrated Approach for Measuring Performance of Network structure: Case study on power plants

Data envelopment analysis (DEA) and balanced scorecard (BSC) are two well-known approaches for measuring performance of decision making units (DMUs). BSC is especially applied with quality measures, whereas, when the quantity measures are used to evaluate, DEA is more appropriate. In the real-world, DMUs usually have complex structures such as network structures. One of the well-known network structures is two-stage processes with intermediate measures. In this structure, there are two stages and each stage uses inputs to produce outputs separately where the first stage outputs are inputs for the second stage. This paper deals with integrated DEA and game theory approaches for evaluating two-stage processes. In addition, it is an extension of DEA model based on BSC perspectives. BSC is used to categorize the efficiency measures under two-stage process. Furthermore, we propose a two-stage DEA model with considering leader-follower structure and including multiple sub stages in the follower stage. To determine importance of each category of measures in a competitive environment, cooperative and non-cooperative game approaches are used. A case study for measuring performance of power plants in Iran is presented to show the abilities of the proposed approach.