An alternative approach for equitable allocation of shared costs by using DEA

摘要

In many applications to which data envelopment analysis could be applied, there is often a fixed or common cost, which is imposed on all decision making units (DMUs), so that this cost can be assigned in an equitable way to the various DMUs. In a proposed approach by Cook and Kress [Eur. J. Oper. Res. 119 (1999) 652] of equitable allocation of shared costs between all DMUs, several problems should be solved, which gives rise to computational difficulties. In this paper, an approach is presented in which without solving linear programming problems only using simple formula, the equitable allocation is achieved.