Centralized resource allocation to create New Most Productive Scale Size (MPSS) DMUs
RAIRO. Operations Research, Tome 56 (2022) no. 4, pp. 2929-2944

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).

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DOI : 10.1051/ro/2022116
Classification : 90C08, 90C32
Keywords: Data envelopment analysis, Centralized resource allocation, Most productive scale size
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     author = {Nojoumi, Kamyar and Saati, Saber and Khoshandam, Leila},
     title = {Centralized resource allocation to create {New} {Most} {Productive} {Scale} {Size} {(MPSS)} {DMUs}},
     journal = {RAIRO. Operations Research},
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     year = {2022},
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Nojoumi, Kamyar; Saati, Saber; Khoshandam, Leila. Centralized resource allocation to create New Most Productive Scale Size (MPSS) DMUs. RAIRO. Operations Research, Tome 56 (2022) no. 4, pp. 2929-2944. doi: 10.1051/ro/2022116

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