Reallocating multiple inputs and outputs of units to improve overall performance

Abstract

All decision-making units (DMUs) in the private or public sector are provided with a set of inputs of different values by their governing decision maker (GDM), and are required to generate a set of outputs. The GDM is able to reallocate the inputs/outputs among the DMUs to estimate the maximum absolute decision making efficiency of the sector. Serial models are presented to manage the interaction between two decision-making levels, GDM and DMUs, to provide the reallocated targets of inputs/outputs for DMUs in the next operating period. The 25 branches of a commercial bank in Taiwan are used as an illustration. (c) 2012 Elsevier Inc. All rights reserved.