Allocating fixed costs and resources via data envelopment analysis

Allocating fixed costs and resources via data envelopment analysis

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Article ID: iaor20042403
Country: Netherlands
Volume: 147
Issue: 1
Start Page Number: 198
End Page Number: 216
Publication Date: May 2003
Journal: European Journal of Operational Research
Authors:
Keywords: statistics: data envelopment analysis
Abstract:

In this paper we show that data envelopment analysis (DEA) can be viewed as maximising the average efficiency of the decision-making units (DMUs) in an organisation. Building upon this we present DEA based models for: (a) allocating fixed costs to DMUs and (b) allocating input resources to DMUs. Simultaneous to allocating input resources output targets are also decided for each DMU. Numeric results are presented for a number of example problems taken from the literature.

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