IDEAS home Printed from https://ideas.repec.org/a/wly/complx/v2022y2022i1n2149093.html

New Approach in Fixed Resource Allocation and Target Setting Using Data Envelopment Analysis with Common Set of Weights

Author

Listed:
  • Marzieh Ghasemi
  • Mohammad Reza Mozaffari
  • Farhad Hosseinzadeh Lotfi
  • Mohsen Rostamy malkhalifeh
  • Mohammad Hasan Behzadi

Abstract

One of the mathematical programming techniques is data envelopment analysis (DEA), which is used for evaluating the efficiency of a set of similar decision‐making units (DMUs). Fixed resource allocation and target setting with the help of DEA is a subject that has gained much attention from researchers. A new model was proposed by determining a common set of weights (CSW). All DMUs were involved with the aim of achieving higher efficiency in every DMU after the procedure. The minimum resources and targets allocated to each DMU were commensurate to the efficiency of that DMU and the share of DMU in the input resources and the output productions. To examine the proposed method, other methods in the DEA literature were examined as well, and then, the efficiency of the method was demonstrated through a numerical example.

Suggested Citation

  • Marzieh Ghasemi & Mohammad Reza Mozaffari & Farhad Hosseinzadeh Lotfi & Mohsen Rostamy malkhalifeh & Mohammad Hasan Behzadi, 2022. "New Approach in Fixed Resource Allocation and Target Setting Using Data Envelopment Analysis with Common Set of Weights," Complexity, John Wiley & Sons, vol. 2022(1).
  • Handle: RePEc:wly:complx:v:2022:y:2022:i:1:n:2149093
    DOI: 10.1155/2022/2149093
    as

    Download full text from publisher

    File URL: https://doi.org/10.1155/2022/2149093
    Download Restriction: no

    File URL: https://libkey.io/10.1155/2022/2149093?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Russell G. Thompson & F. D. Singleton & Robert M. Thrall & Barton A. Smith, 1986. "Comparative Site Evaluations for Locating a High-Energy Physics Lab in Texas," Interfaces, INFORMS, vol. 16(6), pages 35-49, December.
    3. HATAMI-MARBINI, Adel & TAVANA, Madjid & SAATI, Saber & AGRELL, Per J., 2013. "Allocating fixed resources and setting targets using a common-weights DEA approach," LIDAM Reprints CORE 2474, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    4. Cook, Wade D. & Kress, Moshe, 1999. "Characterizing an equitable allocation of shared costs: A DEA approach," European Journal of Operational Research, Elsevier, vol. 119(3), pages 652-661, December.
    5. Tamiz, Mehrdad & Jones, Dylan & Romero, Carlos, 1998. "Goal programming for decision making: An overview of the current state-of-the-art," European Journal of Operational Research, Elsevier, vol. 111(3), pages 569-581, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seyedeh Fatemeh Bagheri & Alireza Amirteimoori & Sohrab Kordrostami & Mansour Soufi, 2022. "Performance Analysis in Production Systems with Uncertain Data: A Stochastic Data Envelopment Analysis Approach," Complexity, John Wiley & Sons, vol. 2022(1).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Feng & Zhu, Qingyuan & Chen, Zhi, 2019. "Allocating a fixed cost across the decision making units with two-stage network structures," Omega, Elsevier, vol. 83(C), pages 139-154.
    2. Yu, Ming-Miin & Chen, Li-Hsueh & Hsiao, Bo, 2018. "A performance-based subsidy allocation of ferry transportation: A data envelopment approach," Transport Policy, Elsevier, vol. 68(C), pages 13-19.
    3. Dai, Qianzhi & Li, Yongjun & Lei, Xiyang & Wu, Dengsheng, 2021. "A DEA-based incentive approach for allocating common revenues or fixed costs," European Journal of Operational Research, Elsevier, vol. 292(2), pages 675-686.
    4. Ruiyue Lin & Zhiping Chen & Zongxin Li, 2016. "An equitable DEA-based approach for assigning fixed resources along with targets," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(11), pages 1373-1381, November.
    5. Hamid Sharafi & Farhad Hosseinzadeh Lotfi & Gholam Reza Jahanshahloo & Somayeh Razipour-GhalehJough, 2020. "Fair Allocation Fixed Cost Using Cross-Efficiency Based on Pareto Concept," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 37(01), pages 1-23, January.
    6. Li, Yongjun & Lin, Lin & Dai, Qianzhi & Zhang, Linda, 2020. "Allocating common costs of multinational companies based on arm's length principle and Nash non-cooperative game," European Journal of Operational Research, Elsevier, vol. 283(3), pages 1002-1010.
    7. Masoumi Hazhir, Maryam & Foroughi, Ali Asghar, 2025. "A survey on resource and fixed cost allocation research with data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 101(C).
    8. Tao Ding & Ya Chen & Huaqing Wu & Yuqi Wei, 2018. "Centralized fixed cost and resource allocation considering technology heterogeneity: a DEA approach," Annals of Operations Research, Springer, vol. 268(1), pages 497-511, September.
    9. Feng Li & Qingyuan Zhu & Liang Liang, 2019. "A new data envelopment analysis based approach for fixed cost allocation," Annals of Operations Research, Springer, vol. 274(1), pages 347-372, March.
    10. HOSSEINZADEH LOTFI, Farhad & HATAMI-MARBINI, Adel & AGRELL, Per & GHOLAMI, Kobra, 2013. "Centralized resource reduction and target setting under DEA control," LIDAM Discussion Papers CORE 2013005, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    11. 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.
    12. Du, Juan & Cook, Wade D. & Liang, Liang & Zhu, Joe, 2014. "Fixed cost and resource allocation based on DEA cross-efficiency," European Journal of Operational Research, Elsevier, vol. 235(1), pages 206-214.
    13. Gholam Reza Jahanshahloo & Jafar Sadeghi & Mohammad Khodabakhshi, 2017. "Proposing a method for fixed cost allocation using DEA based on the efficiency invariance and common set of weights principles," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 85(2), pages 223-240, April.
    14. Adel Hatami-Marbini & Zahra Ghelej Beigi & Hirofumi Fukuyama & Kobra Gholami, 2015. "Modeling Centralized Resources Allocation and Target Setting in Imprecise Data Envelopment Analysis," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1189-1213, November.
    15. Pendharkar, Parag C., 2015. "Cost minimizing target setting heuristics for making inefficient decision-making units efficient," International Journal of Production Economics, Elsevier, vol. 162(C), pages 1-12.
    16. 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.
    17. Adler, Nicole & Friedman, Lea & Sinuany-Stern, Zilla, 2002. "Review of ranking methods in the data envelopment analysis context," European Journal of Operational Research, Elsevier, vol. 140(2), pages 249-265, July.
    18. Kaoru Tone, 2001. "On Returns to Scale under Weight Restrictions in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 16(1), pages 31-47, July.
    19. Conde, Eduardo, 2002. "Mean utility in the assurance region model," European Journal of Operational Research, Elsevier, vol. 140(1), pages 93-103, July.
    20. Pereira, Miguel Alves & Figueira, José Rui & Marques, Rui Cunha, 2020. "Using a Choquet integral-based approach for incorporating decision-maker’s preference judgments in a Data Envelopment Analysis model," European Journal of Operational Research, Elsevier, vol. 284(3), pages 1016-1030.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:complx:v:2022:y:2022:i:1:n:2149093. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://onlinelibrary.wiley.com/journal/8503 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.