An Introduction to Data Envelopment Analysis - A Tool for by R Ramanathan

By R Ramanathan

From the Foreword: 'This e-book is a wonderful device for practitioners who're attracted to the benefits and pitfalls of the technique…. (The author's) study is an instance of inventiveness, diligence and accuracy' - Freerk A. Lootsma, Delft Institute of know-how information envelopment research is a Mathematical Programme for measuring functionality potency of organizational devices. The organizational devices, termed as decision-making devices (DMU) may be of any type: production devices, a collection of colleges, banks, hospitals, energy crops, police stations, prisons, a collection of corporations and so on. DEA has been unsuccessfully utilized to degree the functionality potency of those other forms of DMUs which percentage a typical attribute - that they're non-profit association the place dimension of functionality potency is hard. DEA has been hired for assessing the relative functionality of a collection of corporations that use numerous exact inputs-say on the subject of a college: caliber of scholars, academics, delivers etc.,-to produce a number of exact outputs-number of scholars who go the ultimate 12 months, commonplace grades received by means of the scholars within the ultimate 12 months and so forth. DEA assumes the functionality of the DMUs through the use of the innovations of potency or productiveness that's measured because the ratio of overall outputs to overall inputs. additionally, the efficiencies predicted are relative to the easiest acting DMU or DMUs. the simplest acting DMU is given a ranking of a hundred% and the functionality of alternative DMUs differ among zero -100%.

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2 Exercises For the exercises below, use e = 10–6 whenever needed. 1. Write fractional programs for estimating the efficiencies of all the four firms discussed in Chapter 1. 2. Write the output maximization and input minimization CCR DEA programs for all the four firms. Consider capital employed as the only input variable and value added as the output variable. 3. Solve the CCR DEA programs listed in this section using a suitable LP software package. List the efficiencies and the weights for all the models.

Of Teaching Staff/Proportion of Students Passing in the Final School Exam. 12258 4. , are tabulated below. Plot them on a graph and identify the most efficient hospitals. Draw the efficiency frontier. What is the most inefficient hospital and why? Also, use your own knowledge in analytical geometry or any other idea to compute the efficiency of the following hospitals: B, C, H and R. 012258 2 Mathematical Programming Aspects of DEA As discussed in the first chapter, performance evaluation for the case of two inputs and one output was more complicated than in the case of single input–output.

As we have seen earlier, the dual DEA program for these two firms will indicate zero slacks and unit efficiency. For example, the dual DEA optimal results for Firm P are the following, where 5 A linear combination of a set of variables is one in which each variable is multiplied by a coefficient and the products summed. 5X3. If the formula for the new variable contains functions such as square roots or logarithms, then the new variable is not a linear combination of the other variables. 1 Efficiency frontier of four firms consuming two inputs lP* = q P* = 1.

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