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Fixed Cost and Resource Allocation Considering Technology Heterogeneity in Two-Stage Network Production Systems

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Data Science and Productivity Analytics

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 290))

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Abstract

Many studies have concentrated on fixed cost allocation and resource allocation issues by using data envelopment analysis (DEA). Existing approaches allocate fixed cost and resource primary based on the efficiency maximization principle. However, due to the existing of technology heterogeneity among DMUs, it is impractical for all the DMUs to achieve a common technology level, especially when some DMUs are far from the efficient frontier. In this chapter, under the centralized decision environment, we present a new approach to deal with fixed cost and resource allocation issues for a two-stage production system by considering the factor of technology heterogeneity. Specifically, technology difference is analyzed in the performance evaluation framework firstly. Then, by taking the technology heterogeneity into account, the two-stage DEA-based fixed cost allocation and resource allocation models are proposed. In addition, two illustrated examples are calculated to show the feasibility of the two proposed models. Finally, this chapter is concluded.

This chapter is an extended work based on Ding, T., Chen, Y., Wu, H., & Wei, Y. (2018). Centralized fixed cost and resource allocation considering technology heterogeneity: A DEA approach. Annals of Operations Research, 268(1–2), 497–511.

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Author information

Authors and Affiliations

  1. School of Economics, Hefei University of Technology, 485 Danxia Road, Hefei, 230601, China

    Tao Ding

  2. School of Business Administration, Southwestern University of Finance and Economics, Chengdu, 611130, Sichuan Province, China

    Feng Li

  3. School of Management, Hefei University of Technology, 193 Tunxi Road, Hefei, 230009, China

    Liang Liang

Authors
  1. Tao Ding
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  2. Feng Li
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  3. Liang Liang
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Corresponding author

Correspondence to Tao Ding .

Editor information

Editors and Affiliations

  1. School of Management, University of Bradford, Bradford, UK

    Vincent Charles

  2. Center of Operations Research, University Miguel Hernandez, Elche, Alicante, Spain

    Juan Aparicio

  3. Foisie Business School, Worcester Polytechnic Institute, Worcester, MA, USA

    Joe Zhu

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Ding, T., Li, F., Liang, L. (2020). Fixed Cost and Resource Allocation Considering Technology Heterogeneity in Two-Stage Network Production Systems. In: Charles, V., Aparicio, J., Zhu, J. (eds) Data Science and Productivity Analytics. International Series in Operations Research & Management Science, vol 290. Springer, Cham. https://doi.org/10.1007/978-3-030-43384-0_8

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