Resource allocation problems in data envelopment analysis with ‎simultaneous shared costs and common revenue

Subject Areas : International Journal of Data Envelopment Analysis

Kaveh Khalili-Damghani ¹ , Farzin Noorzadeh ² , ARASH Apornak ³

1 - Department of Industrial Engineering Faculty of Industrial Engineering South-Tehran Branch Islamic Azad University Tehran, Iran
2 - Department of Industrial Engineering South Tehran Branch ‎ Islamic Azad University Tehran, Iran
3 - Department of industrial engineering, University of Tehran

Received: 2021-12-19 Accepted : 2022-04-15 Published : 2022-05-01

Keywords: Data Envelopment Analysis, Modified Russell model, Resource Allocation, Equitable allocation of shared cost, Equitable ‎allocation of common revenue,

Abstract :

Allocating fixed shared cost and common revenue equitably to all decision making units (DMUs) ‎are two interesting issues in resource allocation using data envelopment analysis (DEA). The ‎existing methods have accomplished these distinctively. In this paper, we developed a single ‎dada envelopment analysis (DEA) approach for equitable allocation of shared costs to inputs and ‎common revenue to outputs, concurrently. The main contribution of this research in comparison ‎with existing methods are: 1) both allocation of shared costs to inputs and common revenue to ‎outputs are considered in a single model, simultaneously; 2) The computational efforts has been ‎reduced and no LP required to be solved; 3) simultaneous changes of inputs and outputs have ‎been considered in order to project a DMU towards efficient frontier. A numerical example, ‎adopted form literature, is presented and discussed in order to illustrate the applicability and ‎efficacy of proposed approach. ‎