Data envelopment analysis: a comprehensive text with models, by William Wager Cooper, Lawrence M. Seiford, Kaoru Tone

By William Wager Cooper, Lawrence M. Seiford, Kaoru Tone

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4) in Chapter 1 for engineering efficiency? 4) is for use with a single input and a single output. 6) when specific values are assigned to all of the variables and To put these ratios in the form of a “ratio of ratios” we will use what is called the TDT (Thompson-Dharmapala-Thrall) measure of efficiency obtained from the following problem, Here means “for all Thus, for each choice of and the maximum of the ratios in the braces on the right in the last expression is to be used as the denominator ratio in the first expression.

4. W. Cooper and Y. ) 5. After Charnes, Cooper and Rhodes (1978) above. 6. D. D. , Ann Arbor, Michigan. 1 INTRODUCTION This chapter deals with one of the most basic DEA models, the CCR model, which was initially proposed by Charnes, Cooper and Rhodes in 1978. Tools and ideas commonly used in DEA are also introduced and the concepts developed in Chapter 1 are extended. There, for each DMU, we formed the virtual input and output by (yet unknown) weights and Then we tried to determine the weight, using linear programming so as to maximize the ratio The optimal weights may (and generally will) vary from one DMU to another DMU.

7. ” 8. After the computation is over, click the “Exit” button. 9. Open the sheet “Weight” which contains optimal weights obtained for each hospital. 7. From the table, we can see a set of optimal weights for Hospital A as given by 18 DATA ENVELOPMENT ANALYSIS and for Hospital B as These weights give the best ratio score 1 (100%) to each hospital. 6. Actually, the weights or more concretely, are applied for this fixed weight evaluation and these also made Hospital A efficient. 2 The comptroller and treasurer of an industrial enterprise discuss whether the company’s sales should be treated as an input or an output.

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