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Practical Management Science

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter4: Linear Programming Models

Section4.8: Data Envelopment Analysis (dea)

Problem 41P

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Question

George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a
newfound interest in efficiency. George is interested in determining the productivity of his organization.
He would like to know if his organization is maintaining the manufacturing average of a 3% increase in
productivity. He has the following data representing a month from last year and an equivalent month
this year:
Last Year
Now
Cost Per Input Unit
Units Produced
1,200
1,200
Labor (hours)
Resin (pounds)
$10 per hour
$6 per pound
2% per month
$0.60 per BTU
300
275
50
45
Capital Invested ($)
Energy (BTU)
10,000
11,000
2,900
2,750
The percent change in productivity for one month last year versus one month this year on a multifactor
basis with dollars as the common denominator = % (enter your response as a percentage rounded
to two decimal places).

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