Optimal Allocation of Resources Using the Ideal-Solutions

Abstract

This paper proposes a new method based on the ideal input vector to estimate inputs of a given decision making unit (DMU) when some or all of its outputs are increased to maintain its current efficiency level. In other words, this paper studied the following question: How much would be the increase in the inputs of the DMU if the decision maker increases certain outputs to a particular unit in which the DMU maintains its current efficiency level? In this study, unlike other proposed methods, the above question was addressed using just the single-objective linear programming (LP) problems. The problem of estimation of inputs was investigated based on the non-radial models. Necessary and sufficient conditions are proposed for estimation of inputs using just the single-objective LP problems. In addition, the level of deficiency (if any exists) in each of the output components is specified. An example with real data is presented to illustrate our proposed method.