Application of mathematical programming techniques for measuring the efficiency of companies in the manufacturing and service sector

Abstract

Data Envelopment Analysis (DEA) is a mathematical programming technique successfully used to quantify the efficiency of companies in the manufacturing and service sector. The analytic process developed on the basis of this, using real input and output parameters, increases objectivity in the quantification of efficiency and helps to identify best practices. The paper shows how DEA can be applied to the quality control of public passenger transport (PPT) networks. A PPT line in the network is seen as a Decision Making Unit (DMU) which achieves a certain level of efficiency, where quality is viewed from the perspective of users. DEA is used to determine optimal quality parameters, thus helping to define the total cost of PPT lines, or the total shortfall in funds and the subsidies needed for the normal operation of the public transport network.