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    Assignment 1 15

    Uploaded by

    Senthil Rokesh
    This document provides information about a data envelopment analysis (DEA) that measured the relative efficiency of seven teaching hospitals. It examines the performance of Hospital D specifically. The efficiency measure for Hospital D from the dual formulation is 0.907, indicating it is 90.7% efficient. Hospitals A, B, and E make up the efficient reference set that Hospital D should emulate to improve. Types of inefficiencies for Hospital D are excess use of FTE non-physicians and supply expenses, as well as a shortfall in trained interns. The document formulates the dual model and provides recommendations for Hospital D to become fully efficient.

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    Assignment 1 15

    Uploaded by

    Senthil Rokesh
    55 views4 pages
    This document provides information about a data envelopment analysis (DEA) that measured the relative efficiency of seven teaching hospitals. It examines the performance of Hospital D specifically. The efficiency measure for Hospital D from the dual formulation is 0.907, indicating it is 90.7% efficient. Hospitals A, B, and E make up the efficient reference set that Hospital D should emulate to improve. Types of inefficiencies for Hospital D are excess use of FTE non-physicians and supply expenses, as well as a shortfall in trained interns. The document formulates the dual model and provides recommendations for Hospital D to become fully efficient.

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    This document provides information about a data envelopment analysis (DEA) that measured the relative efficiency of seven teaching hospitals. It examines the performance of Hospital D specifically. The efficiency measure for Hospital D from the dual formulation is 0.907, indicating it is 90.7% efficient. Hospitals A, B, and E make up the efficient reference set that Hospital D should emulate to improve. Types of inefficiencies for Hospital D are excess use of FTE non-physicians and supply expenses, as well as a shortfall in trained interns. The document formulates the dual model and provides recommendations for Hospital D to become fully efficient.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    55 views4 pages

    Assignment 1 15

    Uploaded by

    Senthil Rokesh
    This document provides information about a data envelopment analysis (DEA) that measured the relative efficiency of seven teaching hospitals. It examines the performance of Hospital D specifically. The efficiency measure for Hospital D from the dual formulation is 0.907, indicating it is 90.7% efficient. Hospitals A, B, and E make up the efficient reference set that Hospital D should emulate to improve. Types of inefficiencies for Hospital D are excess use of FTE non-physicians and supply expenses, as well as a shortfall in trained interns. The document formulates the dual model and provides recommendations for Hospital D to become fully efficient.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Faculty of Engineering AND Computer Science

    Concordia University

    Decision Models in Service Sector INDU 466/6151 Winter 2015


    Assignment #1, Due February 2, 2015

    1) DEA has been used to measure the relative efficiency of a group of hospitals. This study involved seven
    teaching hospitals; data on three input measures and four output measures are provided in Table

    a) Consider the performance of Hospital D. What is the interpretation of the efficiency measure for Hospital
    D?
    Based on the dual formulation the efficiency of D is 0.907 according to the results below
    Variable Cells
    Cell
    $I$11
    $I$12
    $I$13
    $I$14
    $I$15
    $I$16
    $I$17
    $I$3

    Name
    A Lambda
    B Lambda
    C Lambda
    D Lambda
    E Lambda
    F Lambda
    G Lambda
    Theta

    Final
    Value
    0.275441643
    0.331060926
    0
    0
    0.17962406
    0
    0
    0.907289767

    Reduced
    Cost
    0
    0
    0.030909367
    0.092710233
    0
    0.009851398
    0.085942474
    0

    Objective Allowable
    Coefficient Increase
    0 0.030037969
    0 0.005957382
    0
    1E+30
    0
    1E+30
    0 0.00352439
    0
    1E+30
    0
    1E+30
    1
    1E+30

    Allowable
    Decrease
    0.03145908
    0.006164899
    0.030909367
    0.092710233
    0.007122722
    0.009851398
    0.085942474
    1

    Constraints
    Cell
    $L$11
    $L$12
    $L$13
    $L$14
    $L$15
    $L$16
    $L$17

    Name
    A LHS
    B LHS
    C LHS
    D LHS
    E LHS
    F LHS
    G LHS

    Final
    Shadow
    Constraint Allowable
    Allowable
    Value
    Price
    R.H. Side
    Increase
    Decrease
    12.16065858
    0
    0 12.16065858
    1E+30
    184.6296995
    0
    0 184.6296995
    1E+30
    2.13163E-13 0.01059322
    0
    1E+30 4.591864679
    -7.10543E-14 0.008802193
    0 0.509469618 1.755909222
    -9.23706E-14 0.013832295
    0 14.42126786 2.274436128
    -2.84217E-13 0.000195838
    0 10.07083129 3.131701538
    7.668112937
    0
    0 7.668112937
    1E+30

    Alternatively the results of primal formulation is:


    Objective Cell (Max)
    Cell
    Name Original Value
    $G$4
    0
    0

    Final Value
    0.907289767

    Variable Cells
    Cell
    Name Original Value
    $C$2 Value U1
    0
    $D$2 Value U2
    0
    $E$2 Value U3
    0
    $F$2 Value U4
    0
    $G$2 Value V1
    0
    $H$2 Value V2
    0
    $I$2
    Value V3
    0

    Final Value
    0.008802193
    0.013832295
    0.000195838
    0
    0
    0
    0.01059322

    Constraints
    Cell
    Name
    $K$11 Unit1
    $K$12 Unit2
    $K$13 C LHS
    $K$14 D LHS
    $K$15 Unit3
    $K$16 Unit4
    $K$17 Unit5
    $K$18 Inputs

    Cell Value
    0
    0
    -0.030909367
    -0.092710233
    0
    -0.009851398
    -0.085942474
    1

    Formula
    $K$11<=$M$11
    $K$12<=$M$12
    $K$13<=$M$13
    $K$14<=$M$14
    $K$15<=$M$15
    $K$16<=$M$16
    $K$17<=$M$17
    $K$18=$M$18

    Integer
    Contin
    Contin
    Contin
    Contin
    Contin
    Contin
    Contin

    Status
    Binding
    Binding
    Not Binding
    Not Binding
    Binding
    Not Binding
    Not Binding
    Binding

    Slack
    0
    0
    0.030909367
    0.092710233
    0
    0.009851398
    0.085942474
    0

    b) Formulate the Dual model for hospital D.


    Min
    s.t.

    FTE non-physicians: A+278.5B +165.6C+250D +206.4E+384F+530.1G <= 250

    Supply expense: A+114.3B +131.3C+316D + 151.2E+ 217F+770.8G <= 316


    Bed-days available: A+106.8B + 65.52C+94.4D +102.1E+153.7F+215G <= 94.4
    Patient-days(>65): A+ 37.64B + 32.91C+ 33.53D + 32.48E+48.78F +220G >= 33.53
    Patient days (<65): 49.52A+ 55.63B + 25.77C+ 41.99D + 55.3E+ 81.92F + 119.7G >= 41.99
    Nurses trained: : A+ 156B + 141C+ 160D + 157E+ 285F + 111G >= 160
    Interns trained: 47A+ 3B + 26C+ 21D + 82E + 92F + 89G >= 21

    >=0

    c) Which hospitals would you recommend Hospital D consider emulating to improve its efficiency? Identify
    the types of inefficiencies for Hospital D and the improvements to be made
    According to the results of dual model, hospitals A, B, and E defines the efficiency reference set. A
    combination of these efficient hospitals will provide the hypothetical unit the hospital D has to be compared
    with:
    For the optimal solution of dual:
    A=0.27544
    B= 0.33106
    And
    E=0.17962
    So the hypothetical unit is:

    310
    278.5
    206.4 214.66
    134.6
    114.3
    151.2 102.07


    116
    106.8
    102.1 85.64


    0.27544 55.31 0.33106 37.64 0.17962 32.48 33.53 should be compared against
    49.52
    55.63
    55.3 41.99


    291
    156
    157 160
    47
    3
    82 28.67

    Hospital D

    250 214.66 35.34


    316 102.07 213.93

    94.4 85.64 8.76

    33.53 33.53 0
    41.99 41.99 0

    160 160 0
    21 28.67 7.67



    It appears that Hospital D is using an excess of 35.34 FTE non physicians, $213,930 supply material, and
    $8,760 worth of bed-days capacity. These excesses should be removed while generating same outpatient
    but 7.67 more of intern training. These changes would make hospital D efficient.

    In order identify the types of inefficiency the following relationship can be used:

    These relations suggest that the efficiency of (Xo, Yo) for DMUo can be improved if the input values are
    reduced radially by the ratio * and the input excesses recorded in s-* are eliminated. Similarly efficiency
    can be attained if the output values are augmented by the output shortfalls in s+*.
    So for inputs excess: *x0 is (226.82, 286.70, 85.64) respectively. When these values are compared with

    x
    j

    (214.66, 102.07, 85.64) it shows that s-* is non zero for FTE-nonphysicians and Supply expenses

    For outputs shortfalls it can be seen that s+* is nonzero for the output of trained interns.
    The maxslack formulation provides the mix inefficiencies
    Decision Variables s1+

    s2+
    0

    DMUs
    A
    B
    C
    D
    E
    F
    G
    Check
    Composite Unit

    s3+
    0

    Patient-D_O Patient-D_U
    55.31
    49.52
    37.64
    55.63
    32.91
    25.77
    33.53
    41.99
    32.48
    55.3
    48.78
    81.92
    58.41
    119.7
    33.53
    41.99
    33.53
    41.99

    Trained N
    291
    156
    141
    160
    157
    285
    111
    160
    160

    s4+
    s1s2s37.668112937 12.16065858 184.6296995

    Trained Int
    47
    3
    26
    21
    82
    92
    89
    21
    28.66

    FTE Non-P
    310
    278.5
    165.6
    250
    206.4
    384
    530.1
    250
    214

    Supply Exp Bed-days


    134.6
    116
    114.3
    106.8
    131.3
    66.52
    316
    94.4
    151.2
    102.1
    217
    153.7
    770.8
    215
    316
    94.4
    102
    85

    Theta
    0.907289767
    Lambda
    0.275441643
    0.331060926
    0
    0
    0.17962406
    0
    0

    In conclusion, the mix inefficiency is 12.16 FTE Non-physicians and $184,629 supply expenses.
    The output shortfall is 7.668 trained interns.

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