Advances and Applications in Statistics
Volume 52, Issue 2, Pages 73 - 95
(February 2018) http://dx.doi.org/10.17654/AS052020073 |
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OPTIMAL UTILIZATION OF RESOURCES IN ORGANIZATIONS USING DATA ENVELOPMENT ANALYSIS
Fatemeh Keshavarz Gildeh, Farhad Hosseinzadeh Lotfi, Alireza Amirteimoori and Mohsen Rostamy-Malkhalifeh
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Abstract: Resource reallocation methods often assign fixed resources to all the operating units of an organization, even those with inefficient input-oriented production. However, inefficient units do not use all of their available resources. In a centralized organizational setting, optimal use of the excess resources of inefficient units is an important issue. This study analyzes how to transfer all the resources from inefficient units to efficient units at low cost. Data envelopment analysis (DEA) applied to proposed ideas was not addressed in previous resource reallocation approaches: first, decreased unit efficiency after resource reallocation is prevented; second, changing the inputs of efficient units simultaneously changes their outputs; third, the amount added to outputs and inputs is proportional to units’ capacity to increase production and consumption levels. Reasonable feasible changes in inputs and outputs lead to fair reallocation in which production plans can be used in real-world applications. The applicability of the proposed method is illustrated with a real-world example of bank branches in Iran. |
Keywords and phrases: DEA, resource reallocation, efficiency, centralized management system. |
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