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Data Envelopment Analysis for Your Problem

Decision Making in a group
Decision Making in a group

Design a problem of your choice to use data envelopment analysis DEA to solve it. Note that the problem can be measuring efficiency of various Decision Making Units (DMUs), based on some inputs and outputs. I suggest that you spend time thinking about this, so that you may extend the problem to your final project. To get ideas, you may look at different examples in the lectureís slides uploaded on BBLearn (Lecture 5 (DEA).ppt), or in the textbook, chapter 7 supplement, pages 205-212. You can also find some other DEA examples and sample projects uploaded on BBLearn under Week 05.

You can work alone, or in groups of two, or in groups of three. Please before uploading your homework on BBLearn, make sure that the document includes all the names.

Please make sure your submission contains following parts:

1.   Defining the problem in details properly (25 points)

2.   DEA formulation (LP model) (25 points)

3.   Excel Solver results (25 points)

4.   Interpreting results including how to improve efficiency of inefficient DMUs (25 points).

Data Envelopment Analysis for Your Problem

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