Volume 56, Number 4, July-August 2022
|Page(s)||2929 - 2944|
|Published online||30 August 2022|
Centralized resource allocation to create New Most Productive Scale Size (MPSS) DMUs
Department of Mathematics, Rasht Branch, Islamic Azad University, Rasht, Iran
2 Department of Mathematics, North Tehran Branch, Islamic Azad University, Tehran, Iran
3 Department of Mathematics, Rasht Branch, Islamic Azad University, Rasht, Iran
Accepted: 10 July 2022
Data envelopment analysis (DEA) is a mathematical programming - based technique to evaluate the performance of a homogeneous group of decision-making units (DMUs) with multiple inputs and outputs. One of the DEA applications involves aggregating input resources and reallocating them to create efficient DMUs.The present study employs the centralized resource allocation (CRA) approach to develop a model for creating new DMUs. These new DMUs are the most productive scale size (MPSS), and all new DMUs lie on a strong supporting hyperplane. In this case, a dual model is used to obtain the strong supporting hyperplane which all new DMUs lie on. This hyperplane is derived by solving the dual model and generating a common set of weights. Then, it is shown that all new DMUs lie on a strong supporting hyperplane, and an MPSS facet is the intersection of this hyperplane with the production possibility set (PPS).
Mathematics Subject Classification: 90C08 / 90C32
Key words: Data envelopment analysis / Centralized resource allocation / Most productive scale size
© The authors. Published by EDP Sciences, ROADEF, SMAI 2022
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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