Data Envelopment Analysis (DEA) is an application of linear programming used to measure the relative efficiency of operating units with the same goals and objectives. As explained in the course, DEA can measure the relative efficiency of a group of hospitals. The data seen below involving seven teaching hospitals include three input measures and four output measures.

a. Formulate a linear programming model so that DEA approach can be used to evaluate the performance of hospital D.

Input Measures Full-Time Supply Expense Available (1000s) Bed-Days Equivalent Hospital Nonphysicians ($1000s) A 310 134.6 116 B. 278.5 114.3 106.8 165.6 131.3 65.52 D. 250 316 94.4 206.4 151.2 102.1 F 384 217 153.7 G 530.1 770.8 215 Output Measures Patient-Days Patient-Days Nurses Interns Trained Trained (65 or older) (under 65) Hospital (1000s) ($1000s) A 55.31 49.52 291 47 37.64 55.63 156 3 C 32.91 25.77 141 26 33.53 41.99 160 21 32.48 55.3 157 82 48.78 81.9 285 92 G 58.41 119.7 111 89