DEA-based production planning
AbstractProduction in large organizations with a centralized decision-making environment like supermarket chains or factories with many workshops, usually involves the participation of more than one individual unit, each contributing a part of the total production. This study is motivated by a production-planning problem regularly faced by the central decision-making unit to arrange new input and output plans for all individual units in the next production season when demand changes can be forecasted. Two planning ideas have been proposed in this paper. One is optimizing the average or overall production performance of the entire organization, measured by the CCR efficiency of the average input and output levels of all units. The other is simultaneously maximizing total outputs produced and minimizing total inputs consumed by all units. According to these two ideas, we develop two DEA-based production planning approaches to find the most preferred production plans. All these individual units, considered as decision-making units (DMUs), are supposed to be able to modify their input usages and output productions. A simple numerical example and a real world data set are used to illustrate these approaches.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Omega.
Volume (Year): 38 (2010)
Issue (Month): 1-2 (February)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marie Chazal & Elyès Jouini & Rabah Tahraoui, 2003.
"Production Planning and Inventories Optimization : A Backward Approach in the Convex Storage Cost Case,"
2003-45, Centre de Recherche en Economie et Statistique.
- Chazal, Marie & Jouini, Elyès & Tahraoui, Rabah, 2008. "Production planning and inventories optimization: A backward approach in the convex storage cost case," Journal of Mathematical Economics, Elsevier, vol. 44(9-10), pages 997-1023, September.
- Marie Chazal & Elyès Jouini & Rabah Tahraoui, 2003. "Production Planning and Inventories Optimization : A Backward Approach in the Convex Storage Cost Case," GE, Growth, Math methods 0312002, EconWPA.
- Elyès Jouini & Marie Chazal & Rabah Tahraoui, 2007. "Production Planning and Inventories Optimization: A Backward Approach in the Convex Storage Cost Case," Working Papers halshs-00167156, HAL.
- Pekka Korhonen & Mikko Syrjänen, 2004. "Resource Allocation Based on Efficiency Analysis," Management Science, INFORMS, vol. 50(8), pages 1134-1144, August.
- Li, Yongjun & Liang, Liang & Chen, Yao & Morita, Hiroshi, 2008. "Models for measuring and benchmarking olympics achievements," Omega, Elsevier, vol. 36(6), pages 933-940, December.
- Beasley, J. E., 2003. "Allocating fixed costs and resources via data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 147(1), pages 198-216, May.
- Jouini, Elyès & Chazal, Marie & Tahraoui, Rabah, 2008. "Production Planning and Inventories Optimization: A Backward Approach in the Convex Storage Cost Case," Economics Papers from University Paris Dauphine 123456789/185, Paris Dauphine University.
- Botti, Laurent & Briec, Walter & Cliquet, Gérard, 2009. "Plural forms versus franchise and company-owned systems: A DEA approach of hotel chain performance," Omega, Elsevier, vol. 37(3), pages 566-578, June.
- Meng, Wei & Zhang, Daqun & Qi, Li & Liu, Wenbin, 2008. "Two-level DEA approaches in research evaluation," Omega, Elsevier, vol. 36(6), pages 950-957, December.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Yu, Ming-Miin & Lin, Erwin T.J., 2008. "Efficiency and effectiveness in railway performance using a multi-activity network DEA model," Omega, Elsevier, vol. 36(6), pages 1005-1017, December.
- Chang, Shyr-Juh & Hsiao, Hsing-Chin & Huang, Li-Hua & Chang, Hsihui, 2011. "Taiwan quality indicator project and hospital productivity growth," Omega, Elsevier, vol. 39(1), pages 14-22, January.
- Fang, Lei, 2013. "A generalized DEA model for centralized resource allocation," European Journal of Operational Research, Elsevier, vol. 228(2), pages 405-412.
- Ramón, Nuria & Ruiz, José L. & Sirvent, Inmaculada, 2011. "Reducing differences between profiles of weights: A "peer-restricted" cross-efficiency evaluation," Omega, Elsevier, vol. 39(6), pages 634-641, December.
- Li, Yongjun & Yang, Min & Chen, Ya & Dai, Qianzhi & Liang, Liang, 2013. "Allocating a fixed cost based on data envelopment analysis and satisfaction degree," Omega, Elsevier, vol. 41(1), pages 55-60.
- Stewart, Theodor J., 2010. "Goal directed benchmarking for organizational efficiency," Omega, Elsevier, vol. 38(6), pages 534-539, December.
- Milioni, Armando Zeferino & de Avellar, José Virgílio Guedes & Gomes, Eliane Gonçalves & Soares de Mello, João Carlos Correia Baptista, 2011. "An ellipsoidal frontier model: Allocating input via parametric DEA," European Journal of Operational Research, Elsevier, vol. 209(2), pages 113-121, March.
- Wang, Ying-Ming & Chin, Kwai-Sang, 2011. "The use of OWA operator weights for cross-efficiency aggregation," Omega, Elsevier, vol. 39(5), pages 493-503, October.
- Amirteimoori, Alireza & Kordrostami, Sohrab, 2012. "Production planning in data envelopment analysis," International Journal of Production Economics, Elsevier, vol. 140(1), pages 212-218.
- Sahoo, Biresh K. & Tone, Kaoru, 2013. "Non-parametric measurement of economies of scale and scope in non-competitive environment with price uncertainty," Omega, Elsevier, vol. 41(1), pages 97-111.
- Samoilenko, Sergey & Osei-Bryson, Kweku-Muata, 2013. "Using Data Envelopment Analysis (DEA) for monitoring efficiency-based performance of productivity-driven organizations: Design and implementation of a decision support system," Omega, Elsevier, vol. 41(1), pages 131-142.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.