Dynamic Resource Allocation Based on DEA with an Application in Production Planning

Aiming at the problem that the traditional DEA-based production planning and control methodologies don’t consider multi-period production process, and other extant ones are insufficient in quantitative analyses, this paper proposes the model for multi-period production planning based on data envelopment analysis (DEA). In addition, the windows analysis procedure is applied to optimally arrange multi-period production process to meet the demand of the market with the minimal cost dynamically. In the end, a numerical example with simulated production data is used to demonstrate the model. It can generate information with respect to an optimal level of inputs, outputs, and inventory in each period.