By R Ramanathan

From the Foreword: 'This e-book is a superb software for practitioners who're attracted to the advantages and pitfalls of the technique…. (The author's) study is an instance of inventiveness, diligence and accuracy' - Freerk A. Lootsma, Delft Institute of expertise info 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 suite of colleges, banks, hospitals, energy crops, police stations, prisons, a collection of agencies and so forth. DEA has been unsuccessfully utilized to degree the functionality potency of those other forms of DMUs which percentage a standard attribute - that they're non-profit association the place size of functionality potency is tough. DEA has been hired for assessing the relative functionality of a collection of organizations that use numerous exact inputs-say relating to a college: caliber of scholars, lecturers, promises etc.,-to produce numerous exact outputs-number of scholars who move the ultimate 12 months, general grades got by means of the scholars within the ultimate yr and so on. 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 expected are relative to the easiest appearing DMU or DMUs. the simplest appearing DMU is given a rating of a hundred% and the functionality of alternative DMUs differ among zero -100%.

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Extra resources for An Introduction to Data Envelopment Analysis - A Tool for Performance Measurement

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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. 4. Repeat exercises 2 and 3 considering capital employed and number of employees as the two input variables, and value added as the output variable.

They represent the best practice. This implies that no other firm or no linear combination5 of firms can be identified which produces the same level of output for less than either or both the inputs. 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.

5. School No. of Non-teaching Staff/Proportion of Students Passing in the Final School Exam. No. of Teaching Staff/Proportion of Students Passing in the Final School Exam. 3 Dual DEA Models The basic theory of linear programming states that every linear programming problem (usually called the primal problem) has another closely related linear program, called its dual. 1 have duals. These duals play a very important role in DEA. Consider the output maximizing DEA program for Firm A. Let us call this as the primal problem and write its dual.

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