Allocation models for DMUs with negative data

Authors

Department of Mathematics, Islamic Azad University of Central Tehran Branch, Simaye Iran Ave., Tehran, 14676-86831, Iran

Abstract

The formulas of cost and allocative efficiencies of decision making units (DMUs) with positive data cannot be used
for DMUs with negative data. On the other hand, these formulas are needed to analyze the productivity and
performance of DMUs with negative data. To this end, this study introduces the cost and allocative efficiencies of
DMUs with negative data and demonstrates that the introduced cost efficiency is equal to the product of allocative
and range directional measure efficiencies. The study then intends to extend the definition of the above efficiencies
to DMUs with negative data and different unit costs. Finally, two numerical examples are given to illustrate the
proposed methods.
JEL classification: C6, D2

Keywords