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Refer again to the data presented in Problem 2.

a. Formulate a linear programming model that can be used to perform data envelopment analysis for hospital E.

b. Solve the model.

c. Is hospital E relatively inefficient? What is the interpretation of the value of the objective function?

d. Which hospitals are involved in making up the composite hospital? Can you make a general statement about which hospitals will make up the composite unit associated with a unit that is not inefficient?

Text Book: An Introduction to Management Science: Quantitative Approaches to Decision. By David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Camm, James Cochran.

 

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