Application of the Data Envelopment Analysis in analysis of cost and profit

DEA (Data Envelopment Analysis) is an effective system analysis method in recent years. By comparing other comprehensive evaluation methods, DEA approach to solving multi-inputs, multi-outputs problems, have an absolute advantage. This paper improves the original model, and constructs cost efficiency DEA model combining with the general assessment of cost effective method. By solving it, we can actually find cost effective evaluation index, so that the application of DEA model further promotes. And through the application of a case, this paper illustrates the method with high maneuverability and a certain degree of rationality. Therefore, the proposed method for optimizing decision-making unit, reducing resource input and improving output levels has the economic significance and reference value.