Data Envelopment Analysis (DEA) Is an LP-Based Methodology in Which

question 68

Multiple Choice

Data Envelopment Analysis (DEA) is an LP-based methodology in which weighted sums of inputs and outputs are calculated and

• A) the constraints capture the maximum effectiveness of each unit.
• B) the objective is to maximize every units output.
• C) the constraints ensure the sum of the weighted outputs is one.
• D) the objective for each unit is to maximize the weighted sum of its outputs.

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Definitions:

Lost Sales

Potential sales that were not realized due to reasons such as stockouts or inadequate supply.

Lost Profits

The potential earnings that were not realized due to unforeseen circumstances, disruptions in business, or decisions that led to lost sales opportunities.

Planning Horizon

The future time period for which plans, strategies, and decisions are made, varying in length depending on the goals and nature of the planning.

Forecasting Errors

Discrepancies between predicted and actual demand, often leading to inventory mismanagement.