course material

1. Define the decision variables.-Define the objective function.Compute the
DEA efficiency
Part 1: a) Define the decision variables,b) Objective function,andc) Constraints.You don’t
need to solve the following problems ( #23, #27, #40, and #44)Problem #23 (P
120)Problem #27 (P122)Problem #40 (P 128): Try problem #39 (P 128), similar toproblem
40, and the #39 answer key posted on the blackboard.Problem #44 (P 130)a) Define the
decision variables.b) Define the objective function.c) Define the constraints.Part 2:Fidelity
Savings & Loans (FSL) operates several banking facilities throughout North Dakota.The FSL
wants to determine its branch efficiency using DEA. FSL collected the following data. Output
(R.O.A, New Loans, and Satisfaction) and input (Labor Hours and Operating Costs).Compute
the DEA efficiency for branch 3.BranchROANew LoansSatisfactionLabor HoursOp.
Costs15.32770923.736.3423.39780943.494.4334.95790935.986.3146.01730826.497.28a)
Define the decision variables.b) Define the objective function.c) Define the constraints.Part
3: Determine the optimal solution using Solver or Analytic solver.Pi = number of units to
produce in month i ( i= 1,2,3,4)Ii = inventory held at the end of month iMIN49 X1 + 45 X2 +
46 X3 + 47 X4 + 1.5 (120 + 2I1+ 2I2 + 2I3 + I4)/2STI1 = 120 + P1 – 420I2 = I1+ P2 – 580I3 =
I2+ P3 – 310I4 = I3+ P4 – 540400 P1 500400 P2 520400 P3 450400 P4 550I1,I2,I3,I4 50