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 -
3 -

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.

References:

Amirteimoori, A. (2013). A DEA two-stage decision processes with shared resources. Central European Journal of Operations Research, 21(1), pp. 141-151.

Asmild, M., Paradi, J. C., & Pastor, J. T. (2009). Centralized resource allocation BCC models. Omega, 37(1), pp. 40-49.

Athanassopoulos, A. D. (1995). Goal programming & data envelopment analysis (GoDEA) for target-based multi-level planning: allocating central grants to the Greek local authorities. European Journal of Operational Research, 87(3), pp. 535-550.

Beasley, J. E. (2003). Allocating fixed costs and resources via data envelopment analysis. European Journal of Operational Research, 147(1), pp. 198-216.

Charnes, A., & Cooper, W. W. (1962). Programming with linear fractional functionals. Naval Research logistics quarterly, 9(3‐4), pp. 181-186.

Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), pp. 429-444.

Chen, M.-C., Yu, M.-M., & Ho, Y.-T. (2018). Using network centralized data envelopment analysis for shipping line resource allocation. International journal of environmental science and technology, 15(8), pp. 1777-1792.

Chen, Y., Du, J., Sherman, H. D., & Zhu, J. (2010). DEA model with shared resources and efficiency decomposition. European Journal of Operational Research, 207(1), pp. 339-349.

Chen, Y., Liang, L., Yang, F., & Zhu, J. (2006). Evaluation of information technology investment: a data envelopment analysis approach. Computers & Operations Research, 33(5), pp. 1368-1379.

Contreras, I., & Lozano, S. (2020). Allocating additional resources to public universities. A DEA bargaining approach. Socio-economic planning sciences, 71, p 100752.

Emrouznejad, A., & Yang, G.-l. (2018). A survey and analysis of the first 40 years of scholarly literature in DEA: 1978–2016. Socio-economic planning sciences, 61, pp. 4-8.

Fang, L. (2013). A generalized DEA model for centralized resource allocation. European Journal of Operational Research, 228(2), pp. 405-412.

Kao, C., & Hwang, S.-N. (2008). Efficiency decomposition in two-stage data envelopment analysis: An application to non-life insurance companies in Taiwan. European Journal of Operational Research, 185(1), pp. 418-429.

Kao, C., & Hwang, S.-N. (2010). Efficiency measurement for network systems: IT impact on firm performance. Decision Support Systems, 48(3), pp. 437-446.

Khatibi, M., & Rahmani Parchikolaei, B. (2018). Reallocation of the Organization Forces by the Super Effective Model Despite the Limitations on Number and the Way of Transferring the Forces of Some Units. Iranian Journal of Optimization, 10(1), pp. 59-65.

Korhonen, P., & Syrjänen, M. (2004). Resource allocation based on efficiency analysis. Management Science, 50(8), pp. 1134-1144.

Lotfi, F. H., Noora, A. A., Jahanshahloo, G. R., Gerami, J., & Mozaffari, M. R. (2010). Centralized resource allocation for enhanced Russell models. Journal of Computational and Applied Mathematics, 235(1), pp. 1-10.

Lozano, S., & Villa, G. (2004). Centralized resource allocation using data envelopment analysis. Journal of Productivity Analysis, 22(1), pp. 143-161.

Lozano, S., & Villa, G. (2005). Centralized DEA models with the possibility of downsizing. Journal of the Operational Research Society, 56(4), pp. 357-364.

Mar-Molinero, C., Prior, D., Segovia, M.-M., & Portillo, F. (2014). On centralized resource utilization and its reallocation by using DEA. Annals of operations Research, 221(1), pp. 273-283.

Moghaddas, Z. (2019). Financial efficiency evaluation in a network with feedbacks. Iranian Journal of Optimization, 11(2), pp. 115-124.

Nemati, M., Kazemi Matin, R., & Toloo, M. (2020). A two-stage DEA model with partial impacts between inputs and outputs: application in refinery industries. Annals of operations Research, 295, pp. 285-312.

Nemati, M., & Matin, R. K. (2019). A data envelopment analysis approach for resource allocation with undesirable outputs: an application to home appliance production companies. Sādhanā, 44(1), pp. 1-13.

Toloo, M., Emrouznejad, A., & Moreno, P. (2017). A linear relational DEA model to evaluate two-stage processes with shared inputs. Computational and Applied Mathematics, 36(1), pp. 45-61.

Wu, J., Chu, J., An, Q., Sun, J., & Yin, P. (2018). Resource reallocation and target setting for improving environmental performance of DMUs: An application to regional highway transportation systems in China. Transportation Research Part D: Transport and Environment, 61, pp. 204-216.

Wu, J., Zhu, Q., Ji, X., Chu, J., & Liang, L. (2016). Two-stage network processes with shared resources and resources recovered from undesirable outputs. European Journal of Operational Research, 251(1), pp. 182-197.

Yadolladi, A. H., & Matin, R. K. (2021). Centralized resource allocation with the possibility of downsizing in two-stage network production systems. RAIRO-Operations Research, 55(4), pp. 2583-2598.

Yu, M.-M., & Chen, L.-H. (2016). Centralized resource allocation with emission resistance in a two-stage production system: Evidence from a Taiwan’s container shipping company. Transportation Research Part A: Policy and Practice, 94, pp. 650-671.

Zha, Y., & Liang, L. (2010). Two-stage cooperation model with input freely distributed among the stages. European Journal of Operational Research, 205(2), pp. 332-338.