Feasibility of Using Data Envelopment Analysis and Regression Analysis in Combination To Indicate Efficient Allocation of Operations and Maintenance Funds

摘要

The present call for efficient use of national defense resources draws its urgency from the highest level of the American government. One problem with the Air Force's current method of allocating Operations and Maintenance funds is that historical spending inefficiencies may ge carried into the baseline for future funds allocations, thereby defeating this call for efficient use of resources. This thesis furthers the exploration of ways to efficiently allocate resources and studies the feasibility of using a relatively new methodology developed by Charnes, Cooper, and Rhodes called Data Envelopment Analysis (DEA), in combination with regression analysis, as a method for indicating efficient allocation of Air Force O&M funds. Intended to illustrate O&M funds in general, this study uses a data base consisting of Fiscal Year 1985 Base Operations Support obligations and activity measures from 25 Strategic Air Command wings.