An Equitable Allocation of Fixed Costs and Resources: A DEA Approach

In many applications of DEA approach, there is often a fixed cost or resource which is imposed on all decision making units. One nature question then is: how can this cost or resource be assigned in a reasonable way to various DMUs? To obtain this cost or resource allocation, in this paper we propose a DEA approach, which is based on three assumptions: invariance, minimal distance to average allocation and positive. For illustrating the method, numerical results for an example from the literature are presented