Industrial Engineering Journal ›› 2013, Vol. 16 ›› Issue (4): 62-66.

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DEA Model for Profit Distribution in Joint Bidding Alliance-Based on Efficiency and Fairness

  

  1. Business School, Hohai University, Nanjing 210098, China
  • Online:2013-08-31 Published:2013-11-22

Abstract: Effective and fair profit distribution is the precondition to ensure the steady cooperation and efficient operation for a joint bidding alliance. According to certain principle of profit distribution and actual operation of joint bidding alliance, the influence factors of income distribution of a joint bidding alliance is analyzed. By introducing data envelopment analysis (DEA) and its relative theories, an initial DEA model is established for profit distribution in considering effectiveness. Then, a modified planning model for profit distribution is derived in the view of fairness. A case study shows that the model established for profit distribution is effective and rational.

Key words: joint bidding alliance, profit distribution, data envelopment analysis (DEA), effectiveness and fairness