Developing an inverse range directional measure model to deal with positive and negative values

Sara Yousefi, Reza Farzipoor Saen*, Seyed Shahrooz Seyedi Hosseininia

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)


Purpose: To manage cash flow in supply chains, the purpose of this paper is to propose inverse data envelopment analysis (DEA) model. Design/methodology/approach: This paper develops an inverse range directional measure (RDM) model to deal with positive and negative values. The proposed model is developed to estimate input and output variations such that not only efficiency score of decision making unit (DMU) remains unchanged, but also efficiency score of other DMUs do not change. Findings: Given that auto making industry deals with huge variety and volumes of parts, cash flow management is so important. In this paper, inverse RDM models are developed to manage cash flow in supply chains. For the first time, the authors propose inverse DEA models to deal with negative data. By applying the inverse DEA models, managers distinguish efficient DMUs from inefficient ones and devise appropriate strategies to increase efficiency score. Given results of inverse integrated RDM model, other combinations of cash flow strategies are proposed. The suggested strategies can be taken into account as novel strategies in cash flow management. Interesting point is that such strategies do not lead to changes in efficiency scores. Originality/value: In this paper, inverse input and output-oriented RDM model is developed in presence of negative data. These models are applied in resource allocation and investment analysis problems. Also, inverse integrated RDM model is developed.

Original languageEnglish
Pages (from-to)2520-2540
Number of pages21
JournalManagement Decision
Issue number9
Publication statusPublished - Oct 16 2019


  • Cash flow
  • Data envelopment analysis (DEA)
  • Inverse DEA
  • Investment analysis
  • Negative data
  • Resource allocation
  • Supply chain management

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Management Science and Operations Research

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