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A consumer advocacy group would like to evaluate the efficiency of three airline companies with respect to several criteria that are important to consumers. The
A consumer advocacy group would like to evaluate the efficiency of three airline companies with respect to several criteria that are important to consumers. The three companies are Beta, Unified, and Southeast. The output measures are identified as average minutes late arriving, number of luggage losses per 10,000 customers, weighting time for check-in, friendliness, and quality of air service (result of a questionnaire that measured this output on a 100-point scale). The input measures were labour cost per day, number of flights per day, and overhead cost per day. Results are summarized below: Note that a minus sign is included for the first three output measures: the higher the value, the better the measure. In other words, if average minutes late are 15, the airplanes are late an average of 15 minutes. Note that the positive values for these three measures are impossible. Use DEA and determine the relative efficiency of the three airline companies. A consumer advocacy group would like to evaluate the efficiency of three airline companies with respect to several criteria that are important to consumers. The three companies are Beta, Unified, and Southeast. The output measures are identified as average minutes late arriving, number of luggage losses per 10,000 customers, weighting time for check-in, friendliness, and quality of air service (result of a questionnaire that measured this output on a 100-point scale). The input measures were labour cost per day, number of flights per day, and overhead cost per day. Results are summarized below: Note that a minus sign is included for the first three output measures: the higher the value, the better the measure. In other words, if average minutes late are 15, the airplanes are late an average of 15 minutes. Note that the positive values for these three measures are impossible. Use DEA and determine the relative efficiency of the three airline companies
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