Volume 55, Number 4, July-August 2021
|Page(s)||2583 - 2598|
|Published online||31 August 2021|
Centralized resource allocation with the possibility of downsizing in two-stage network production systems
Department of Mathematics, Karaj Branch, Islamic Azad University, Karaj, Iran.
* Corresponding author: firstname.lastname@example.org
Accepted: 31 July 2021
The network data envelopment analysis (NDEA) technique has been recently developed to measure the relative efficiency of complex production systems. NDEA models provide more meaningful and informative results in comparison to the conventional black-box DEA approach that ignores the operations of the component processes. Regarding the centralized decision-making systems, normal management imposes common resource constraints to maximize produced outputs and minimize consumed inputs. The present study seeks to introduce new centralized resource allocation models in two-stage network production systems. This intra-organizational perspective also provides the possibility of closing down some of the existing units to improve system efficiency. To do so, three scenarios of centralized DEA models are introduced to take advantage of this possibility. A simple numerical example is used for illustration purposes. An empirical application of the proposed approach to the twenty branches of a university is also presented to show the applicability of the new approach.
Mathematics Subject Classification: 90B30
Key words: Network data envelopment analysis / efficiency / centralized resource allocation / downsizing
© 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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