Resource allocation for branch network system with considering heterogeneity based on DEA method

In this paper, we proposed a new DEA approach to allocate the resource in branch network system which is not covered by the existing resource allocation works under a centralized decision-making environment. The branch network system is typically appears in multi-national or multi-regional corporations, which has many branches across multiple locations. Given the spatial distribution of the production, we imposed additional restrictions on resource allocation and divided the resource inputs into three groups: fixed inputs, regional inputs that allocated to the branches in the same area and common resource that an additional resource allocated to all the branches. Then, we generalize the model further to accommodate technological heterogeneity due to the difference in the geographical locations of the branches. And the objective of the proposed models is to maximize the gross profits of the entire organization, which is a natural assumption for a for-profit organization. Finally, an example was presented to illustrate the proposed approach with heterogeneous technology is more practically feasible and superior than the prior approach with homogeneous technology.