Abstract: Combining Data Envelopment Analysis and cooperative game theory, this paper has studied how to allocate the fixed cost among decision making units(DMU).Firstly, it has proven that all DMU individuals and collectivity are DEA efficient, if the fixed cost can be treated as an additional input to DMUs.Then, combining the conclusion with cooperative game, it defines characteristic function, and proposes a nucleolus-based fixed cost allocation model, as well as its algorithms.Finally, a numerical experiment has shown that the proposed approach is reasonable and its algorithms are feasible.

Key words: DEA, fixed cost allocation, cooperative game, nucleolus