Data Envelopment Analysis (DEA) is an LP-based methodology in which weighted sums of inputs and outputs are calculated and
A) the constraints capture the maximum effectiveness of each unit.
B) the objective is to maximize every units output.
C) the constraints ensure the sum of the weighted outputs is one.
D) the objective for each unit is to maximize the weighted sum of its outputs.

Question

Quizplus · Accepted Answer

In DEA, the objective for each unit is to maximize the weighted sum of its outputs, while the constraints ensure that the weighted sum of inputs is less than or equal to one (or some other constant) and that the weighted sum of outputs for all units is less than or equal to one (or some other constant). Therefore, choice D is the correct answer.

Data Envelopment Analysis (DEA) Is an LP-Based Methodology in Which