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A review of DEA-based resource and cost allocation models: implications for services

Author

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  • Sheneeta W. White
  • Sanjeev K. Bordoloi

Abstract

Data envelopment analysis (DEA), by its design, was not intended for resource allocation but for measuring relative efficiency of decision-making units. Despite this, many researchers have successfully applied this modelling technique to a variety of resource and cost allocation decisions in order to improve operational efficiencies. This paper is a comprehensive review and classification of such articles. The papers were classified by industry and by DEA model-orientation. The findings of this paper show that existing models predominately apply DEA to mass service industries (e.g., banking), thus, revealing the opportunity for researchers to further develop DEA-based resource allocation modelling toward improving the operational efficiencies of other service industries (e.g., professional services). To guide researchers to this end, we offer a discussion of the use of DEA modelling when the service provider and the customer are both resources needing to be allocated, in other words, using DEA to model professional or co-created services.

Suggested Citation

  • Sheneeta W. White & Sanjeev K. Bordoloi, 2015. "A review of DEA-based resource and cost allocation models: implications for services," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 20(1), pages 86-101.
    • Handle: RePEc:ids:ijsoma:v:20:y:2015:i:1:p:86-101
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    Citations

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    Cited by:

    1. Kristiaan Kerstens & Jafar Sadeghi & Ignace Woestyne & John Walden, 2024. "Short-run Johansen frontier-based industry models: methodological refinements and empirical illustration on fisheries," Journal of Productivity Analysis, Springer, vol. 61(1), pages 47-62, February.
    2. Ane Elixabete Ripoll-Zarraga & Sebastián Lozano, 2020. "A centralised DEA approach to resource reallocation in Spanish airports," Annals of Operations Research, Springer, vol. 288(2), pages 701-732, May.
    3. Antonio Peyrache & Maria C. A. Silva, 2019. "The Inefficiency of Production Systems and its decomposition," CEPA Working Papers Series WP052019, School of Economics, University of Queensland, Australia.
    4. Mehdi Soltanifar & Farhad Hosseinzadeh Lotfi & Hamid Sharafi & Sebastián Lozano, 2022. "Resource allocation and target setting: a CSW–DEA based approach," Annals of Operations Research, Springer, vol. 318(1), pages 557-589, November.

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