An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 16

Data envelopment analysis can measure the relative efficiency of a group of hospitals. The following data from a particular study involving seven teaching hospitals include three input measures and four output measures:
a. Formulate a linear programming model so that data envelopment analysis can be used to evaluate the performance of hospital D.
b. Solve the model.
c. Is hospital D relatively inefficient? What is the interpretation of the value of the objective function?
d. How many patient-days of each type are produced by the composite hospital?
e. Which hospitals would you recommend hospital D consider emulating to improve the efficiency of its operation?