Using the optimal control technique in facilities sharing to increased units’ efficiency

Afshin Shariat (), Zahra Hosseinnejad () and Alireza Pooya ()
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Afshin Shariat: Ferdowsi University of Mashhad
Zahra Hosseinnejad: Ferdowsi University of Mashhad
Alireza Pooya: Ferdowsi University of Mashhad

OPSEARCH, 2024, vol. 61, issue 2, No 10, 761 pages

Abstract: Abstract Performance evaluation is an essential part of the management process. Performance appraisal provides the information needed for decision making as well as a competitive advantage for successive operations. Therefore, firms’ managers should look at the organization systematically to improve their performance. Data envelopment analysis is one of the most influential management techniques that provide managers a tool to test the performance of the organization’s subunits and to make decisions based on the results for a better future. The purpose of writing this article is to use the optimal control technique in setting controllable inputs of data envelopment analysis model. This setting is based on the subunits output of the previous period, so that their efficiencies of the current period are close to the desired levels. Optimal control considers the units outputs in each period and adjusts the inputs of the next period based on converging the efficiency of each to its desired level. This method’s cost function is modeled based on data envelopment analysis to evaluate the efficiency of decision-making units in a finite discrete time interval. In this research, a new method is used for two DMUs for three-time steps, which can undoubtedly be extended to a more significant number of units and time steps. This method implemented on a science and technology park to achieve its subunits’ performance to their desired level by facilities sharing as inputs. This method has been able to achieve well results with Monte Carlo approach.

Keywords: Data envelope analysis; Optimal control; Performance evaluation; Facilities sharing (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s12597-023-00724-2

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