Data Envelopment Analysis with LINGO Modeling for Technical Educational Group of an Organization

Abstract

Data Envelopment Analysis (DEA) was developed to help compare the relative performance of decision-making units. It is a non-parametric method for performing frontier analysis. It uses linear programming to estimate the efficiency of multiple decision-making units and it is commonly used in production, management and economics [3]. DEA generates an efficiency score between 0 and 1 for each unit, indicating how effectively they are managing their resources. A compelling feature of DEA is it develops a unique rating system for each unit designed to make them look their best. This should facilitate acceptance of DEA within an organization [2].<br /> LINGO is a comprehensive tool designed to make building and solving mathematical optimization models easier and more efficient. In this paper, we have explained what DEA does? How DEA evaluates efficiency, how DEA identifies paths to improve efficiency using this LINGO software, and how to use DEA. We have considered a group of 3 technical colleges (campuses). We assume that each campus “converts" 2 inputs into 3 outputs. This will enable managers to explore and assess the value of using DEA in their service operations. This paper also shows that Lingo Model can offer more information than the standard LP approach with exclusion of Simulation modeling approach [4]. The advantages of this approach are modesty, flexibility and visualization. The results by comparison of educational campuses were helpful for organization management.