Method of allocating the fixed cost based on data envelopment analysis and cooperative game

Liang Liang · Systems Engineering - Theory & Practice · 2008

Combining DEA(Data Envelopment Analysis) and cooperative game,this paper has studied how to allocate the fixed cost among decision making units(DMU).It is firstly proofed that all DMUs are DEA efficiency if the allocated cost is as an additional input.Then,based up the conclusion,we combine it with cooperative game,define the characteristic function,and propose a Shapley-Value cost allocation.Finally,Both numerical experiment and comparison with the existing methods based up DEA have shown that the proposed method is relatively reasonable and executive.

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