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Resource allocation for performance improvement

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Abstract

In this paper the problem of allocating resources among Decision Making Units is considered. This study covers the case in which several homogeneous units are operating under the supervision of a central unit. The resource allocation is carried out by the DM (central unit) in such a way that the overall performance of the system is improved. Performance is defined by means of a convex combination of the ratio of the efficiencies before and after the resource allocation. It is assumed that each unit is allowed to modify its resources within the current production possibility set. A novel model is proposed which aims at achieving the best performance of the system. The method is capable of dealing with some additional constraints, imposed by the DM. The model is illustrated by a simple numerical example and a real application.

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Notes

  1. The optimal values of u i and v r in model (1) provide a measure of the relative contribution of input x ik and output y rk , respectively.

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Authors and Affiliations

  1. Department of Mathematics, Faculty of Basic Sciences, Birjand University, Birjand, Iran

    Nasim Nasrabadi

  2. Department of Information and Service Economy, School of Economics, Aalto University, Helsinki, Finland

    Nasim Nasrabadi, Pekka J. Korhonen & Jyrki Wallenius

  3. Department of Mathematics, Tehran Tarbiat Moallem University, Tehran, Iran

    Akram Dehnokhalaji

  4. Information and Service Economy, School of Economics, Aalto University, Helsinki, Finland

    Akram Dehnokhalaji

  5. Department of Mathematics, Science & Research Branch, Islamic Azad University, Tehran, Iran

    Narsis A. Kiani

  6. Viroquant Research Group Modeling, University of Heidelberg, Bioquant BQ26, Heidelberg, Germany

    Narsis A. Kiani

Authors
  1. Nasim Nasrabadi
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  2. Akram Dehnokhalaji
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  3. Narsis A. Kiani
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  4. Pekka J. Korhonen
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  5. Jyrki Wallenius
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Correspondence to Akram Dehnokhalaji.

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Nasrabadi, N., Dehnokhalaji, A., Kiani, N.A. et al. Resource allocation for performance improvement. Ann Oper Res 196, 459–468 (2012). https://doi.org/10.1007/s10479-011-1016-y

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  • DOI: https://doi.org/10.1007/s10479-011-1016-y

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