Three-stage-DEA model selections and managerial decision

Previous DEA studies have provided useful managerial information on improving the productivity of managersʹ organizations. This study tries to clarify the implicit assumptions of Ruggieroʹs (1998) three-stage DEA model and the data fitness that was overlooked in the three-stage-DEA. However, the model is extended to avoid possible bias or faulty results. As such, the distinct extended features are presented and discussed. With the presented features and a designated procedure including normality test, practitioners and researchers can apply this work to other related managerial applications as well as cited areas.