Basic Two-Stage Systems
The simplest network structure is that of two divisions, in that the operations of the system are divided into two parts, performed by the two divisions. This type of system was first noticed by Charnes et al. (1986) in studying the performance of US Army recruitment. They found that army recruitment actually had two stages, creating awareness through advertising and signing contracts. To assess the impact of an input on the performance of the system, it is necessary to know the division that this input is associated with, so that the true effect of this input can be identified.
KeywordsIntermediate Product System Efficiency Constant Return Variable Return Scale Efficiency
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