Merging decision-making units under inter-temporal dependence. (15th April 2019)

• Record Type: Journal Article
• Authors: Zeinodin, E; Ghobadi, S
• Is Part Of: IMA journal of management mathematics. Volume 31:Number 2(2020)
• Page Start: 139
• Page End: 166
• Publication Date: 2019-04-15
• Subjects: data envelopment analysis (DEA) -- inverse DEA -- merging DMUs -- inter-temporal dependence -- multiple-objective programming (MOP); Management -- Mathematical models -- Periodicals; Management science -- Mathematical models -- Periodicals; Business mathematics -- Periodicals; 650.01513
• DOI: 10.1093/imaman/dpz005
• Languages: English
• ISSNs: 1471-678X

Abstract

Abstract: This article deals with merging of decision-making units (DMUs) under the inter-temporal dependence assumption. The present study answers the following question in the dynamic data envelopment analysis framework: if a subset of DMUs is required to merge and create a new DMU with a specific input/output level and a predetermined efficiency target, what should be the level of output/input of the merged DMU? Sufficient conditions are derived for input/outputestimation of the merged DMU under the inter-temporal dependence assumption. The performance of the proposed method is demonstrated by applying it to a banking sector example.