Fair distribution of a common revenue
Abdollah Hadi‐Vencheh, M. Tavassoli Kajani
Abstract
Abdollah Hadi‐Vencheh, M. Tavassoli Kajani
Abstract
In many application to which Data Envelopment Analysis (DEA) could be applied, there is often a fixed or common profit which is a result from” the decision making units (DMUs) performance and/or as the result of non-discretionary factors on system. For example, common revenue which is a result from increasing the price of products or common revenue which is a result from the change of supply of a particular item. A problem arises as to how this revenue (or profit) can be assigned in a fair way to the various DMUs. In this work we propose a DEA approach for allocation such revenue.
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In many application to which Data Envelopment Analysis (DEA) could be applied, there is often a fixed or common profit which is a result from” the decision making units (DMUs) performance and/or as the result of non-discretionary factors on system. For example, common revenue which is a result from increasing the price of products or common revenue which is a result from the change of supply of a particular item. A problem arises as to how this revenue (or profit) can be assigned in a fair way to the various DMUs. In this work we propose a DEA approach for allocation such revenue.
Key concepts: Revenue, Distribution (mathematics), Business, Mathematics, Accounting, Mathematical analysis