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Title

MODIFICATION OF CENTRALIZED RESOURCE ALLOCATION MODEL WITH VARIABLE RETURN TO SCALE USING ASSURANCE REGION METHOD

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 Start Page | End Page

Abstract

 A CENTRALIZED DECISION MAKER (DM) AS SUPERVISES OF ITS DECISION MAKING UNITS (DMUS), INTEREST TO MINIMIZING THE TOTAL INPUT CONSUMPTION AND MAXIMIZING THE TOTAL OUTPUT PRODUCTION.THIS CAN BE DONE BY MAXIMIZING THE EFFICIENCY OF INDIVIDUAL UNITS USING BY CONVENTIONAL DEA MODELS. LOZANO AND VILLA (2004) USE THESE MODELS FOR INCREASING THE EFFICIENCY OF EACH DMU AND MINI-MIZING THE TOTAL INPUT OR MAXIMIZING THE TOTAL OUTPUT, AT THE SAME TIME. THIS PAPER MODIFIED THE MODELS WHICH USED THE ABOVE PROCESS BY ASSURANCE REGION METHOD. THE ADVANTAGES OF THIS MODIFICATION ARE CONSIDERED BY EXAMPLES.

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