Estimating capacity utilization in network dea in the presence of undesirable outputs

This paper aims to evaluate the performance of two-stage production processes through the estimation of capacity utilization with presence of undesirable outputs. Capacity utilization is a determinant which measures the capability of decision making units to utilize fixed inputs in short-run. Hence, to develop it on these systems, factors production are categorized into fixed and variable inputs. Then the SBM-based two-stage DEA model is modified to apply the weak disposability to modeling undesirable factors. The study progressed to consider the effect of intermediate measures on capacity utilization. Ultimately the presented numerical example illustrates the effectiveness and applicability of current model.