Abstract: Data Envelopment Analysis (DEA) is a mathematical programming approach,which has been widely accepted as an effective tool to evaluate the efficiency of a Decision Making Unit (DMU) relative to other DMUs. Traditional DEA approaches usually treat the evaluated DMU as a'BLACKBO} and ignore its internal mechanism. This paper will advance a DEA-based method to evaluate the performance of a two-stage serial production system with consideration of its internal mechanism. Actually the advanced method in the paper is a special form of a Network DEA model,different from the pervious works but indeed helpful for managers to find out the reason and improvement of inefficiency for any two-stage serial production system,such as a supply chain.

Key words: date envelopment analysis, efficiency evaluation, two-stage production system