DEA with Linear Object Function

The classic DEA model maximizes the ratio of aggregate output over aggregate input.If we denote the aggregated output as revenues and the aggregated input as costs, then the DEA model works with the ratio of revenues and costs.In the article, instead of the ratio of output over input, the difference between revenues and costs, i.e. profit, is used.It is shown that the fractional objective function and the difference between revenues and costs may differ in the optimal solution.In the proposed DEA model, the objective function is profit, that is, the difference between revenues and costs, so it is a linear objective function.The proposed linear objective function DEA model is demonstrated by a numerical example and the differences in results are shown.This model is also analyzed and its possible modifications are shown.