Resource allocation for performance improvement

Nasim Nasrabadi, Akram Dehnokhalaji, Narsis A. Kiani, Pekka J. Korhonen, Jyrki Wallenius

Research output: Contribution to journalArticlepeer-review


In this paper the problem of allocating resources among Decision Making Units is considered. This study covers the case in which several homogeneous units are operating under the supervision of a central unit. The resource allocation is carried out by the DM (central unit) in such a way that the overall performance of the system is improved. Performance is defined by means of a convex combination of the ratio of the efficiencies before and after the resource allocation. It is assumed that each unit is allowed to modify its resources within the current production possibility set. A novel model is proposed which aims at achieving the best performance of the system. The method is capable of dealing with some additional constraints, imposed by the DM. The model is illustrated by a simple numerical example and a real application.
Original languageEnglish
Pages (from-to)459-468
JournalAnnals of Operations Research
Issue number1
Publication statusPublished - 1 Jul 2012


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