Sadeghi, Jafar, Ghiyasi, Mojtaba and Dehnokhalaji, Akram (2020). Resource allocation and target setting based on virtual profit improvement. Numerical Algebra, Control & Optimization, 10 (2), pp. 127-142.
Abstract
One application of Data Envelopment Analysis (DEA) is the resource allocation and target setting among homogeneous Decision Making Units (DMUs). In this paper, we assume that all units are under the supervision and control of a central decision making unit, for instance chain stores, banks, schools, etc. The aim is to allocate available resources among units in a way that the so-called organisational overall ”virtual profit” is maximized. Our method is highly flexible in decision making to achieve the goals of the Decision Maker (DM). The resulting production plans maintain the following characteristics: (1) the virtual profit of each unit is calculated with a common set of weights; (2) the selected weights for calculating the virtual profit prevent the virtual profit of the system from getting worse; (3) the virtual profits of less profitable units are improved as much as possible. The proposed method is illustrated with a simple numerical example and a real life application.
Publication DOI: | https://doi.org/10.3934/naco.2019043 |
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Divisions: | College of Business and Social Sciences > Aston Business School > Operations & Information Management College of Business and Social Sciences > Aston Business School |
Additional Information: | Jafar Sadeghi, Mojtaba Ghiyasi, Akram Dehnokhalaji. Resource allocation and target setting based on virtual profit improvement. Numerical Algebra, Control & Optimization, doi: 10.3934/naco.2019043 |
Uncontrolled Keywords: | Data envelopment analysis,resource allocation,target setting,common weights,profit |
Publication ISSN: | 2155-3289 |
Last Modified: | 08 Aug 2024 07:05 |
Date Deposited: | 16 Sep 2019 13:59 |
Full Text Link: | |
Related URLs: |
http://www.aims ... 34/naco.2019043
(Publisher URL) |
PURE Output Type: | Article |
Published Date: | 2020-06-01 |
Published Online Date: | 2019-10-01 |
Accepted Date: | 2019-07-09 |
Authors: |
Sadeghi, Jafar
Ghiyasi, Mojtaba Dehnokhalaji, Akram ( ![]() |