Centralized resource allocation with the possibility of downsizing to evaluate two-stage production system with shared inputs

Subject Areas : Data Envelopment Analysis

Amir Yadollahi ¹ , Reza Kazemi Matin ² , Farhad Hosseinzadeh Lotfi ³

1 - Department of Mathematics, Karaj Branch, Islamic Azad University, Karaj, Iran
2 - Department of Mathematics, Karaj Branch, Islamic Azad University, Karaj, Iran
3 - Department of Mathematics, Science and Research Branch, Islamic Azad University, Tehran, Iran

Received: 2021-11-05 Accepted : 2021-12-19 Published : 2021-06-01

Keywords: Efficiency, Network data envelopment analysis, Centralized resource allocation, downsizing, shared resources,

Abstract :

This paper proposes a centralized network data envelopment analysis model that combines the centralized data envelopment analysis model with possibility of downsizing and two-stage network data envelopment analysis. In the proposed model, this paper also considers the situation in which shared inputs are jointly consumed in each stage. We also assume some outputs can be produced by the first and second stages by using separate inputs. The proposed model is illustrated in an empirical example of twenty sale representatives in two provinces of Golestan and Mazandaran. The results provide valuable information for the centralized decision-maker on how to reallocate resources among the units.

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