Data Envelopment Analysis And Its Application In Analysis Of Cost And Profit

The Data Envelopment Analysis (DEA) is one kind of completely new effectiveness evaluating means developed on the basis of relative effectiveness, and has become a new field in the operational research. It evaluates Decision Making Units(DMU) by using the mathematical programming pattern comparing relative efficiency between DMUs. Because it evaluates DMU from the best angle andneed not any obvious relation between input and output, it is very objective.In this paper, firstly, the development of DEA theories, DEA methods and DEA application are discussed. The basic DEA model, DEA efficiency theories are analyzed. On the basis of this, this paper detailedly analyzes DEA's feature and advantage; Secondly, the paper points out that, DEA's application in the cost and profit analysis, and the market economy key element is considered in DEA's pattern, which will surely lift the DEA's means analysis capability, and broadens its analysis field, especially below the market economy system; thirdly, forthe question of cost efficiency, this paper puts forward a DEA model of cost efficiency, proves the relation between the optimal result of the model and costefficiency and discusses its relative efficiency . The influence of input and output on cost can directly be analyzed through caculating the DEA model of cost efficiency and a example is given to analysis economical benefit.