Amirteimoori, A. and A. Emrouznejad (2012). “Optimal input/output reduction in production processes.” Decision Support Systems 52(3): 742–747.

Amirteimoori, A. and A. Emrouznejad (2012). “Optimal input/output reduction in production processes.” Decision Support Systems 52(3): 742–747.

While conventional Data Envelopment Analysis (DEA) models set targets for each operational unit, this paper considers the problem of input/output reduction in a centralized decision making environment. The purpose of this paper is to develop an approach to input/output reduction problem that typically occurs in organizations with a centralized decision-making environment. This paper shows that DEA can make an important contribution to this problem and discusses how DEA-based model can be used to determine an optimal input/output reduction plan. An application in banking sector with limitation in IT investment shows the usefulness of the proposed method.