Centralized Resource Reduction And Target Setting Under Dea Control

Adel Hatami-Marbini, Farhad Hosseinzadeh Lotfi, Per J. Agrell, Kobra Gholami, Zahra Ghelej Beigi

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review


Data Envelopment Analysis (DEA) is a powerful tool for measuring the relative efficiency of decision making units (DMUs). In centralized decision-making systems, management normally imposes common resource constraints such as fixed capital, budgets for operating capital and staff count. In consequence, the profit or net value added of the units subject to resource reductions will decrease. In terms of performance evaluation combined with resource allocation, the interest of central management is to restore the general efficiency value of the DMUs. The paper makes four contributions: (1) we consider the performance evaluation of the centralized budgeting of hierarchical organizations; (2) we address the evaluation problems that the central decision maker does not desire to deteriorate the efficiency score of the DMUs after input and/or output reduction; (3) we develop a common set of weights (CSW) method; (4) we extend a new approach to optimize the inputs and/or outputs contraction such that the efficiency of all DMUs will get bigger than or equal to the efficiency of previous change.
Original languageEnglish
Title of host publicationData Envelopment Analysis And Performance Measurement
Subtitle of host publicationProceedings of the 11th International Conference of DEA
EditorsRajiv Banker, Ali Emrouznejad, Hasan Bal, Ihsan Alp, Mehmet Ali Cengiz
Number of pages5
Publication statusPublished - 1 Apr 2014
Externally publishedYes
Event11th International Conference on Data Envelopment Analysis: Data Envelopment Analysis and Performance Measurement - Samsun, Turkey
Duration: 27 Jun 201330 Jun 2013
Conference number: 11


Conference11th International Conference on Data Envelopment Analysis
Abbreviated titleDEA 2013
Internet address


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