Volume 55, Number 3, May-June 2021
|Page(s)||1933 - 1948|
|Published online||28 June 2021|
New inverse DEA models for budgeting and planning
Faculty of Mathematical Sciences, Shahrood University of Technology, Shahrood, Iran
2 Faculty of Industrial Engineering and Management Sciences, Shahrood University of Technology, Shahrood, Iran
* Corresponding author: firstname.lastname@example.org
Accepted: 20 April 2021
Data envelopment analysis (DEA) measures the efficiency score of a set of homogeneous decision-making units (DMUs) based on observed input and output. Considering input-oriented, the inverse DEA models find the required input level for producing a given amount of production in the current efficiency level. This article proposes a new form of the inverse DEA model considering income (for planning) and budget (for finance and budgeting) constraints. In contrast with the classical inverse model, both input and output levels are variable in proposed models to meet income (or budget) constraints. Proposed models help decision-makers (DMs) to find the required value of each input and each output’s income share to meet the income or budget constraint. We apply the proposed model in the efficiency analysis of 58 supermarkets belonging to the same chain. However, these methods are general and can be used in the budgeting and planning process of any production system, including business sectors and firms that provide services.
Mathematics Subject Classification: 90C05 / 90C08 / 90C29
Key words: DEA / inverse DEA / MOLP / budget constraint / income constraint
© The authors. Published by EDP Sciences, ROADEF, SMAI 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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