Fair distribution of a common revenue

 

Abdollah Hadi-Vencheh

 

Majid Tavassoli-Kajani

 

Department of Mathematics

Islamic Azad University

P.O.Box 81595-158

Khorasgan, Isfahan

Iran

 

Abstract

 

In many application to which Data Envelopment Analysis (DEA) could be applied, there is often a fixed or common profit which is a result from” the decision making units (DMUs) performance and/or as the result of non-discretionary factors on system. For example, common revenue which is a result from increasing the price of products or common revenue which is a result from the change of supply of a particular item. A problem arises as to how this revenue (or profit) can be assigned in a fair way to the various DMUs. In this work we propose a DEA approach for allocation such revenue.

 

Keywords: DEA, efficiency, linear programming.