Output planning based on data envelopment analysis and extended cournot model

Based on data envelopment analysis (DEA) and extended Cournot model, this paper studies how each decision making unit (DMU) makes its most preferred output plans for the next production period when the market demands for one or more outputs are forecasted to change by a certain amount. Taking the perspective of noncooperative competition among all DMUs, this study proposes a method to search for the ideal production plans satisfying both market demand and production possibility set. Both numerical example and real world application to fast-food industry have showed that the proposed method is reasonable and executive.