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The Conference on Web Based Business Management (WBM 2010 E-BOOK)

Chengdu,China,9.20-9.22,2010

ISBN: 978-1-935068-18-1 Scientific Research Publishing, USA

E-Book 1342pp Pub. Date: October 2010

Category: Engineering

Price: $80

Title: A DEA-Based Approach for Equitable Allocation of Fixed Cost
Source: The Conference on Web Based Business Management (WBM 2010 E-BOOK) (pp 1255-1258)
Author(s): Ruiyue Lin, Dept. Mathematic and Information Science, Wenzhou University, Wenzhou, Zhejiang Province, China
Xiaomin Chen, Dept. Mathematic and Information Science, Wenzhou University, Wenzhou, Zhejiang Province, China
Abstract: In many applications of DEA approach, there are often fixed costs which should be assigned to a set of competing decision making units (DMUs). One nature problem then is: how can these costs be assigned in an equitale manner to various DMUs? To obtain an appropriate fixed costs allocation, in this paper we propose a DEA-based approach via maximizing the average efficiency across all DMUs and taking individual DMUs’ production scales into consideration. In order to illustrate our approach, numerical results of two examples are presented in this paper.
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