Allocating fixed costs and target setting: A data envelopment analysis-based approach

Allocating fixed costs and target setting: A data envelopment analysis-based approach

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Article ID: iaor20071005
Country: Netherlands
Volume: 171
Issue: 1
Start Page Number: 136
End Page Number: 151
Publication Date: Dec 2005
Journal: Applied Mathematics and Computation
Authors: ,
Abstract:

In many applications of DEA, there is often a fixed cost which is imposed on all decision making units (DMU). In this paper, we present a DEA-based method for (a) allocating fixed cost to DMUs and (b) allocating fixed input and setting fixed target. To illustrate the method, numerical results for an example from the literature are presented.

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