RESOURCE ALLOCATION AND TARGET SETTING IN INTERVAL DATA ENVELOPMENT ANALYSIS

Data envelopment analysis (DEA) is a commonly used non-parametric technique for performance measurement of decision making units (DMU) that can also be used in normatively in activity planning, resource allocation and target setting. Whereas earlier work in this line have considered completely defined data, prospective use of DEA in activity planning often involves uncertainty with respect to the feasible ranges for allocation of resources and target settings. In this paper, we present an imprecise DEA-based method with interval inputs and outputs as to address this shortcoming. The proposed model corresponds to reasonable managerial objectives concerning the technical efficiency of the subordinate units after implementing resource allocation and target setting.