Economies of scope in two-stage production systems: A data envelopment analysis approach. A data envelopment analysis approach

Leila Zeinalzadeh Ahranjani, Reza Kazemi Matin, Reza Farzipoor Saen*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)


Traditional data envelopment analysis (DEA) models consider a production system as a black-box without taking into consideration its internal linked activities. In recent years, a number of DEA studies have been presented to estimate efficiency score of two-stage network production systems in which all outputs of the first stage (intermediate products) are used as inputs of the second stage to produce final outputs. This paper aims to develop a two-stage network DEA model to study economic notion of economies of scope (ES) between two products. It intends to determine profitability of joint production of two products by one firm. Numerical illustrations are presented to show applicability of proposed methods.

Original languageEnglish
Article number2
Pages (from-to)335-349
Number of pages15
JournalRAIRO - Operations Research
Issue number2
Publication statusPublished - Apr 1 2018
Externally publishedYes


  • Economies of scope
  • Intermediate product
  • Network data envelopment analysis
  • Two-stage production system

ASJC Scopus subject areas

  • Theoretical Computer Science
  • Computer Science Applications
  • Management Science and Operations Research

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