Issue: 2026/Vol.36/No.4, Pages
RANKING AND MERGING UNITS BASED ON DECISION-MAKERS TARGETS
Alireza Fakharzadeh Jahromi 
, Hassan Rostamzadeh
This is not yet the definitive version of the paper. This version will undergo additional copyediting, typesetting and review before it is published in its final form, but we are providing this version to give early visibility of the article.
Cite as: A. F. Jahromi, H. Rostamzadeh. Ranking and merging units based on decision-makers targets. Operations Research and Decisions 2026: 36(4). DOI 10.37190/ord/223946
Abstract
In management science, mergers and acquisitions are common strategies to enhance the efficiency of decision-making units {(DMUs)}. While several methods have been proposed within data envelopment analysis {(DEA)} to facilitate merging and acquiring DMUs, none adequately consider the specific targets of decision-makers. This study first introduces a novel approach to identify a desirable DMU based on the gradient of the target function; subsequently, all units are ranked according to their distance from these corresponding target units. Following this, a method is presented to select the best partner for the merger or acquisition of a specified unit. Furthermore, new models are developed for horizontal mergers and acquisitions that align with the gradient of the decision-maker's target function, thereby enabling the formation of a new unit with the desired efficiency level. Finally, the proposed models are applied to rank, merge, and acquire banks in Iran.
Keywords: merger, acquisition, desirable unit, ranking, best partner
Received: 30 January 2026 Accepted: 2 Juna 2026
Published online: 2 June 2026