Journal
EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Volume 147, Issue 1, Pages 198-216Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/S0377-2217(02)00244-8
Keywords
data envelopment analysis; efficiency; cross-efficiencies; fixed cost allocation; resource allocation; target setting
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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. (C) 2002 Elsevier Science B.V. All rights reserved.
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