A Mathematical Programming Method for Generating Alternative Managerial Performance Goals After Data Envelopment Analysis

Data Envelopment Analysis (DEA) is an application of linear programming which allows a comparison of Decision Making Units (DMU) which share the same operating charter but function in different environments. DEA allows the identification of a •peer group• so that an individual DMU is compared only with DMU's that operate in a similar environment. From the •best• in this peer group, an efficient frontier can be identified. In this paper, we discuss, via mathematical programming, a way of determining alternative possible courses of action for the manager of a DMU that has been deemed inefficient.

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