Optimal input/output reduction in production processes

Authors: Amirteimoori, Alireza; Emrouznejad, Ali

Journal: Decision Support Systems (2012)

DOI: 10.1016/j.dss.2011.11.020

While conventional Data Envelopment Analysis (DEA) models set targets for each operational unit, this paper considers the problem of input/output reduction in a centralized decision making environment. The purpose of this paper is to develop an approach to input/output reduction problem that typically occurs in organizations with a centralized decision-making environment. This paper shows that DEA can make an important contribution to this problem and discusses how DEA-based model can be used to determine an optimal input/output reduction plan. An application in banking sector with limitation in IT investment shows the usefulness of the proposed method.

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