IDEAS home Printed from https://ideas.repec.org/a/wsi/apjorx/v38y2021i02ns0217595920500499.html
   My bibliography  Save this article

Centralized Resource Allocation Based on the Bargaining Approach

Author

Listed:
  • Lei Fang

    (Business School, Nankai University, Tianjin 300071, P. R. China)

  • Hecheng Li

    (School of Mathematics and Statistics, Qinghai Normal University, Xining 810016, P. R. China)

  • Zhongbin Wang

    (Business School, Nankai University, Tianjin 300071, P. R. China)

Abstract

In a centralized decision-making environment, the central unit supervises all the operating units’ production activities and focuses on achieving the overall goals of the entire organization from a global viewpoint by allocating available resources to them. However, all the current models about resource allocation under the centralized decision-making commonly exhibit the non-unique optimal solutions and neglect the competition and trade-off among all the DMUs to maximize the individual aggregated output of each DMU. This phenomenon makes the allocation result imbalanced and unacceptable to all the DMUs. To overcome this problem, this paper introduces Nash bargaining game theory to develop a new centralized resource allocation model which not only takes into account the overall goals of the organization from an overall perspective, but also considers competition and trade-off among all the DMUs. Finally, an empirical example is used to demonstrate the applicability of our proposed approach. The results show that our Nash bargaining game model not only guarantees the uniqueness of the optimal resource allocation results, but also improves the balance of the resource allocation result, which makes it acceptable to all the DMUs.

Suggested Citation

  • Lei Fang & Hecheng Li & Zhongbin Wang, 2021. "Centralized Resource Allocation Based on the Bargaining Approach," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 38(02), pages 1-18, April.
  • Handle: RePEc:wsi:apjorx:v:38:y:2021:i:02:n:s0217595920500499
    DOI: 10.1142/S0217595920500499
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217595920500499
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S0217595920500499?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lozano, Sebastián & Contreras, Ignacio, 2022. "Centralised resource allocation using Lexicographic Goal Programming. Application to the Spanish public university system," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).
    2. Gupta, Anshu & Pachar, Nomita & Jain, Akansha & Govindan, Kannan & Jha, P.C., 2023. "Resource reallocation strategies for sustainable efficiency improvement of retail chains," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:apjorx:v:38:y:2021:i:02:n:s0217595920500499. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/apjor/apjor.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.