Single‐phase slack‐based centralized DEA for resource reallocation

• DOI: http://doi.org/10.1111/itor.12210
• Author: Bo Hsiao,Ming‐Miin Yu
• Date: 01 March 2018
• Published date: 01 March 2018

Intl. Trans. in Op. Res. 25 (2018) 737–751

DOI: 10.1111/itor.12210

INTERNATIONAL

TRANSACTIONS

IN OPERATIONAL

RESEARCH

Single-phase slack-based centralized DEA for resource

reallocation

Ming-Miin Yuaand Bo Hsiaob

aDepartment of TransportationScience, National Taiwan Ocean University, Taiwan No. 2, Pei-NingRoad, Keelung 20224,

Taiwan,R.O.C.

bDepartment of Information Management, Chang Jung Christian University, No. 1, Changrong Road, GueirenDistrict,

Tainan City 71101, Taiwan, R.O.C.

E-mail: yumm@mail.ntou.edu.tw [Yu]; bhsiao@mail.cjcu.edu.tw [Hsiao]

Received 10 July2014; received in revised form 5 March 2015; accepted 20 August 2015

Abstract

Data envelopment analysis (DEA) is an effective method for measuring the relative efficiency of a set of

homogeneous decision-making units (DMUs). Yu et al.’s study proposed an extended centralized DEA

(CDEA) model that utilizes a two-phase process for reallocating resources to project not only in each DMU

(e.g., branch company)but also in the central DMU (e.g., headquarters, central authority) on the production

frontier.However,evaluating the two-phase model using the approachof Yu et al. maypresent some challenges

because of inconsistent benchmarks. To solve this issue, we modified a single-phase slack-based CDEA that

considers transfer-in and transfer-out slacks to facilitate the reallocation and adjustment of resources. Our

modified single-phase slack-based CDEA is demonstratedwith a numerical example illustrating input resource

reallocation. Resultsshow that the modified single-phase CDEA model is effective to deal with a more realistic

inconsistency reference set and provide much more reallocation ability than the two-phase approach.

Keywords:resource reallocation; centralized data envelopment analysis; single phase; slack-based measure

1. Introduction

Since Charnes, Cooper, and Rhodes proposed the first data envelopment analysis (DEA) model

in 1978, several other DEA models have been developed and utilized (e.g., Melgarejo et al., 2009;

Saranga and Phani, 2009; Lozano et al., 2011; Figueiredo and Barrientos, 2012; Mar-Molinero

et al., 2014; Yuet al., 2013; Yadav et al., 2014). One of these models is the centralized DEA (CDEA)

model proposed by Lozano et al. (2004) and Lozano and Villa (2004). This model is useful in

organizational management because it optimizes the combined resource consumption of all units

rather than separately considering the consumption of each unit. CDEA is particularly relevant in

C

2015 The Authors.

International Transactionsin Operational Research C

2015 International Federation of OperationalResearch Societies

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