F€are and Grosskopf (2004) address the approach of Seiford and Zhu (2002) where undesirable input and output measures are treated in data envelopment analysis (DEA). One key feature of Seiford and Zhu s (2002) approach is that the bad outputs are treated as outputs in DEA model but are reduced when DEA efficiency is evaluated. F€are and Grosskopf (2004) suggest an alternative approach in treati...

Conventional production theory views an organization as a production system in which input is the resource utilized by the organization and transformed into output. Economic efficiency based on production theory, implies that organizations should structure their outputs to achieve the lowest possible use of inputs. ParetoKoopman’s description of efficiency provides explanation that “the perform...

Supply chain management is essential for the success of firms and customer satisfaction. In addition, a suitable performance evaluation system is vital to the effective management of the supply chain. Due to the importance of cost management in the supply chain, an approach based on Data Envelopment Analysis (DEA) is proposed in the current study for evaluating the cost efficiency of closed-loo...