A Comprehensive Dea Approach for the Resource Allocation Problem based on Scale Economies Classification

Abstract

This paper is concerned with the resource allocation problem based on data envelopment analysis (DEA) which is generally found in practice such as in public services and in production process. In management context, the resource allocation has to achieve the effective-efficient-equality aim and tries to balance the different desires of two management layers: central manager and each sector. In mathematical programming context, to solve the resource allocation asks for introducing many optimization techniques such as multiple-objective programming and goal programming. We construct an algorithm framework by using comprehensive DEA tools including CCR, BCC models, inverse DEA model, the most compromising common weights analysis model, and extra resource allocation algorithm. Returns to scale characteristic is put major place for analyzing DMUs’ scale economies and used to select DMU candidates before resource allocation. By combining extra resource allocation algorithm with scale economies target, we propose a resource allocation solution, which can achieve the effective-efficient-equality target and also provide information for future resource allocation. Many numerical examples are discussed in this paper, which also verify our work.