DATA ENVELOPMENT ANALYSIS

Introduction
In the last few years and until now, various models of smartphones had filled the market. This
happen because of high demand from consumers in all age. We as a consumers will make
comparison between the best smartphone in the market before purchase.
The advantage behind this comparison, manufacturers will get useful feedback from
consumer in order to improve their product much better than others. By adopting DEA as a
comparison tool, most of the attributes in a smartphones are adopted as variable in comparison.
The input should be considered is the price. Other variables is considered as output such as
media and gaming, hardware, connectivity, communication and productivity.

Methodology
Data Envelopment Analysis (DEA) is a relatively new data oriented approach for evaluating the
performance of a set of peer entities called Decision Making Units (DMUs) which convert multiple inputs
into multiple outputs. The definition of a DMU is generic and flexible. Recent years have seen a great
variety of applications of DEA for use in evaluating the performances of many different kinds of entities
engaged in many different activities in many different contexts in many different countries.
These DEA applications have used DMUs of various forms to evaluate the performance of
entities, such as hospitals, US Air Force wings, universities, cities, courts, business firms, and others,
including the performance of countries, regions, etc. Because it requires very few assumptions, DEA has
also opened up possibilities for use in cases which have been resistant to other approaches because of the
complex (often unknown) nature of the relations between the multiple inputs and multiple outputs
involved in DMUs.
Formally, DEA is a methodology directed to frontiers rather than central tendencies.
Instead of trying to fit a regression plane through the center of the data as in statistical
regression, for example, one floats a piecewise linear surface to rest on top of the observations.
Because of this perspective, DEA proves particularly adept at uncovering relationships that
remain hidden from other methodologies. For instance, consider what one wants to mean by
efficiency, or more generally, what one wants to mean by saying that one DMU is more
efficient than another DMU. This is accomplished in a straightforward manner by DEA without
requiring explicitly formulated assumptions and variations with various types of models such as
in linear and nonlinear regression models.
Relative efficiency in DEA accords with the following definition, which has the advantage of
avoiding the need for assigning a priori measures of relative importance to any input or output.











,

Definition 1.1 (Efficiency Extended Pareto-Koopmans Definition): Full (100%) efficiency is
attained by any DMU if and only if none of its inputs or outputs can be improved without worsening
some of its other inputs or outputs.
In most management or social science applications the theoretically possible levels of efficiency will
not be known. The preceding definition is therefore replaced by emphasizing its uses with only the
information that is empirically available as in the following definition:

Definition 1.2 (Relative Efficiency): A DMU is to be rated as fully (100%) efficient on the basis of
available evidence if and only if the performances of other DMUs does not show that some of its inputs or
outputs can be improved without worsening some of its other inputs or outputs.
the data as in statistical regression, for example, one floats a piecewise linear surface to rest on top of
the observations. Because of this perspective, DEA proves particularly adept at uncovering relationships
that remain hidden from other methodologies. For instance, consider what one wants to mean by
efficiency, or more generally, what one wants to mean by saying that one DMU is more efficient than
another DMU. This is accomplished in a straightforward manner by DEA without requiring explicitly
formulated assumptions and variations with various types of models such as in linear and nonlinear
regression models.
Relative efficiency in DEA accords with the following definition, which has the advantage of avoiding
the need for assigning a priori measures of relative importance to any input or output










The ratio;

Value of smartphones output
Cost of smartphones input








Data 1:Data above show that, the percentage of performance in each criteria provided for
smartphones. The highest percentage indicates the most efficient in that criteria and the lowest
indicates less efficient. For example, output 1 show that iPhone iOS 6.1 is the best in that
criteria. While, Blackberry OS 10 have the lowest percentage in performance in that criteria.
Otherwise, same with other criteria.

Information
Input: price (RM)
Output 1: media and gaming
Output 2:hardware
Output 3:connectivity
Output 4:communication
Output 5:productivity











Smartphone
Input
1(RM)
Output
1(%)
Output
2(%)
Output
3(%)
Output
4(%)
Output
5(%)
iPhone iOS 6.1 1800 87 58 80 60 62
Android 4.2 Jelly Bean 1500 74 89 63 72 84
Blackberry OS 10 1100 50 58 65 84 90
Windows phone 8 1300 62 80 78 86 66
iPhone iOS 6.1 formulation

Global optimal solution found.
Objective value: 0.9739488
Infeasibilities: 0.000000
Total solver iterations: 2

Model Class: LP

Total variables: 5
Nonlinear variables: 0
Integer variables: 0

Total constraints: 11
Nonlinear constraints: 0

Total nonzeros: 30
Nonlinear nonzeros: 0


Variable Value Reduced Cost
M1 0.1020932E-01 0.000000
M2 0.1000000E-03 0.000000
M3 0.8467191E-03 0.000000
M4 0.1000000E-03 0.000000
M5 0.1000000E-03 0.000000
N 0.5555556E-03 0.000000

Row Slack or Surplus Dual Price
1 0.9739488 1.000000
2 0.2605122E-01 0.000000
3 0.000000 -0.9785638
4 0.2240813E-01 0.000000
5 0.000000 -0.2352626
6 0.4555556E-03 0.000000
7 0.1010932E-01 0.000000
8 0.000000 -47.91318
9 0.7467191E-03 0.000000
10 0.000000 -30.68917
11 0.000000 -35.72669
12 0.000000 0.9853817







Android 4.2 Jelly Bean formulation

Global optimal solution found.
Objective value: 1.000000
Infeasibilities: 0.000000
Total solver iterations: 3

Model Class: LP

Total variables: 5
Nonlinear variables: 0
Integer variables: 0

Total constraints: 11
Nonlinear constraints: 0

Total nonzeros: 30
Nonlinear nonzeros: 0


Variable Value Reduced Cost
M1 0.3988842E-02 0.000000
M2 0.5935006E-02 0.000000
M3 0.1000000E-03 0.000000
M4 0.1000000E-03 0.000000
M5 0.1941788E-02 0.000000
N 0.6666667E-03 0.000000

Row Slack or Surplus Dual Price
1 1.000000 1.000000
2 0.3743496 0.000000
3 0.000000 -1.000000
4 0.000000 0.000000
5 0.000000 0.000000
6 0.5666667E-03 0.000000
7 0.3888842E-02 0.000000
8 0.5835006E-02 0.000000
9 0.000000 0.000000
10 0.000000 0.000000
11 0.1841788E-02 0.000000
12 0.000000 1.000000







Blackberry OS 10 formulation

Global optimal solution found.
Objective value: 1.000000
Infeasibilities: 0.000000
Total solver iterations: 2

Model Class: LP

Total variables: 5
Nonlinear variables: 0
Integer variables: 0

Total constraints: 11
Nonlinear constraints: 0

Total nonzeros: 30
Nonlinear nonzeros: 0


Variable Value Reduced Cost
M1 0.1000000E-03 0.000000
M2 0.1000000E-03 0.000000
M3 0.1000000E-03 0.000000
M4 0.1159167E-01 0.000000
M5 0.1000000E-03 0.000000
N 0.9090909E-03 0.000000

Row Slack or Surplus Dual Price
1 1.000000 1.000000
2 0.9121636 0.000000
3 0.4980364 0.000000
4 0.000000 -1.000000
5 0.1563348 0.000000
6 0.8090909E-03 0.000000
7 0.000000 0.000000
8 0.000000 0.000000
9 0.000000 0.000000
10 0.1149167E-01 0.000000
11 0.000000 0.000000
12 0.000000 1.000000






Windows Phone 8 formulation

Global optimal solution found.
Objective value: 1.000000
Infeasibilities: 0.000000
Total solver iterations: 2

Model Class: LP

Total variables: 5
Nonlinear variables: 0
Integer variables: 0

Total constraints: 11
Nonlinear constraints: 0

Total nonzeros: 30
Nonlinear nonzeros: 0


Variable Value Reduced Cost
M1 0.1000000E-03 0.000000
M2 0.1000000E-03 0.000000
M3 0.1244359E-01 0.000000
M4 0.1000000E-03 0.000000
M5 0.1000000E-03 0.000000
N 0.7692308E-03 0.000000

Row Slack or Surplus Dual Price
1 1.000000 1.000000
2 0.3624282 0.000000
3 0.3380000 0.000000
4 0.9120513E-02 0.000000
5 0.000000 -1.000000
6 0.6692308E-03 0.000000
7 0.000000 0.000000
8 0.000000 0.000000
9 0.1234359E-01 0.000000
10 0.000000 0.000000
11 0.000000 0.000000
12 0.000000 1.000000





Result
iPhone iOS 6.1=0.9739488
Android 4.2 Jelly Bean=1
Blackberry OS 10=1
Windows Phone 8=1
Efficient: Android 4.2 Jelly Bean, Blackberry OS 10, Windows Phone 8
Inefficient: iPhone iOS 6.1