Posted: October 19th, 2016

Develop the linear programming for Data Envelopment Analysis (DEA) to evaluate the efficiency of port E under the constant return to scale (CRS) assumption.

Question 3 The following table provides the data set of seven (7) ports, named from A to G respectively, for their input variables, x1, x2, x3 and output variables, y1, y2. DMU A B C D E F G INPUT x1 2 2 3 5 1 2 3 x2 4 5 4 3 5 6 2 x3 6 4 7 2 2 4 6 OUTPUT y1 2 4 4 6 5 3 5 y2 3 3 5 4 5 4 1 a Develop the linear programming for Data Envelopment Analysis (DEA) to evaluate the efficiency of port E under the constant return to scale (CRS) assumption. [5 Marks] b Would an exporting company that relies on port E and multi modal transport through this port be interested in the port’s efficiency? Explain why and discuss the implication for the port