REDISTRIBUTING MULTIPLE INPUTS WITH A PARABOLIC DEA MODEL

Abstract

. Parametric DEA models presume a functional form for the efficiency frontier and are used for resource redistribution. Parabolic DEA is a particular case of these models used to redistribute a single input in Variable Returns to Scale scenarios. In this study, we extend this model to redistribute multiple inputs simultaneously, ensuring that all DMUs will become extreme efficient after redistribution maintaining their outputs. The proposed model is a single multi-objective Linear Programming Problem (PPL) which provides a single optimal solution. To solve this model, two approaches are used, the Weighted Sum of the Objective Functions and the Separation of Variables. Two numerical examples considering single and multiple outputs are used and the results obtained are identical for the two approaches.