Centralized additive model

While conventional data envelopment analysis (DEA) models set targets separately for each decision making unit (DMU), Lozano and Villa (2004) introduced the concept of ldquocentralizedrdquo DEA models, which aim at optimizing the combined resource consumption by all units in an organization rather than considering the consumption by each unit, separately. In these models, there is a centralized decision maker (DM) who supervises all DMUs. The main aim is optimizing total input consumption and output production. In this paper, firstly we present centralized output product model. Then we introduce parametric centralized additive model, which during one phase minimizes total consumption inputs and maximizes total output production simultaneously, in the direction of optimization vector. Some numerical examples of the proposed models and their results are presented.