An Algorithm for Resource Allocation through the Classification of DMUs

Data envelopment analysis (DEA) is a non-parametric method for assessing relative efficiency of decision-making units (DMUs). Every single decision-maker with the use of inputs produces outputs. These decision-making units will be defined by the production possibility set. Resource allocation to DMUs is one of the concerns of managers since managers can employ the results of this process to allocate resources in organizations appropriately and sufficiently and as a result achieve the lowest cost and highest level of profit. In this paper we will suggest an algorithm to select such efficient decision making units.