2019 Volume 4 Issue 2 Supplementary
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‎ OPTIMAL BUDGETING BY USING A GENERALIZED OPTIMAL SYSTEM DESIGN DEA MODEL ‎AND THE EFFECT OF A NEW DMU'S BUDGET IN THE MODEL


Alireza FAKHARZADEH JAHROMI*, Mohammad Hassan MOJTABAEI‎, Mina HAGHGUYAN JAHROMI‎
Abstract

As there are two constraints in the design of an optimal system via data envelopment ‎analysis (OSDviaDEA) models, a maximum of two responses are determined for ‎prioritizing optimal budgeting allocations. While for the organization administrators, ‎determining the budget in an optimal way for each individual making unit (DMU) is ‎considered an important issue. Likewise, determining the optimal budget of the entirety of ‎an organization, the wasted budget and /or budget deficit are decisively important issues to ‎the managers. Thus, due to the fact that the OSD DEA models can merely decide on two ‎optimal conditions for the organizational DMUs, they do not have the necessary efficiency ‎in this regard. The present research paper sets out to introduce an extended OSD DEA to ‎resolve some of the shortcomings of the former models. Moreover, the effects of adding a ‎new DMU in prioritizing optimal budgeting of the units through extended OSD DEA are ‎explored. And in continuation, drawing upon the sensitivity analysis procedure on LP ‎problem, a novel method is presented which helps to prevent solving the problem for a ‎second time. The final part is dedicated to providing numerical examples for explaining the ‎proposed method‎‎‎‎‎.


Issue 2 Volume 11 - 2026