Using a special linear programming model to the assessment of operational efficiency of manufacturing organiztions

Abstract EN

This paper seeks to examine the utilization of a special linear programming model known as Data Envelopment Analysis (DEA) to assess and compare the efficient production frontiers of profit-oriented decision-making units (DMUs) performing similar tasks.

The DEA approach is illustrated using actual data on 39 manufacturing organizations over four years period (1989-1992).

The DEA methodology results in the identification of relatively efficient and inefficient DMUs, and helped in ranking them in an ascending order according to their relative efficiency scores.