DEA (Data Envelopment Analysis)
DEA (Data Envelopment Analysis). Toshiyuki Sueyoshi New Mexico Tech Dept. of Management. Data Envelopment Analysis. (1) Relative Comparison (2) Multiple Inputs and Outputs (3) Efficiency Measurement (0%-100%) (4) Avoid the Specification Error between Inputs and Outputs
DEA (Data Envelopment Analysis)
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Presentation Transcript
DEA (Data Envelopment Analysis) Toshiyuki Sueyoshi New Mexico Tech Dept. of Management
Data Envelopment Analysis • (1) Relative Comparison • (2) Multiple Inputs and Outputs • (3) Efficiency Measurement (0%-100%) • (4) Avoid the Specification Error between • Inputs and Outputs • (5) Production/Cost Analysis
Case : 1 input – 1 output Table 1.1 : 1 input – 1 output Case
Efficiency Frontier E G Output F C A H B D 0 Employees Figure 1.1:Comparison of efficiencies in 1 input–1 output case
Efficiency Frontier E G Output F C A Regression Line H B D 0 Employees Figure 1.2 : Regression Line and Efficiency Frontier
Table 1.2 : Efficiency 1 = C > G > A> B > E > D = F > H = 0.4
Efficiency Frontier Output C D2 D1 D 0 Employees Figure 1.3 : Improvement of Company D
Case : 2 inputs – 1 output Table 1.3 : 2 inputs – 1 output Case
Production Possibility Set G F C A I Offices/Sales E D B Efficiency Frontier H 0 Employees/Sales Figure 1.4 : 2 inputs – 1 output Case
C A Offices/Sales A1 A2 B 0 Employees/Sales Figure 1.5 : Improvement of Company A
Case : 1 input – 2 outputs Table 1.4 : 1 input – 2 outputs Case
A1 B C A Efficiency Frontier D F Offices/Sales Production Possibility Set E1 G E 0 Customers/Offices Figure 1.6 : 1 input – 2 outputs Case
Case : Multiple inputs – Multiple outputs Table 1.5 : Example of Multiple inputs–Multiple outputs Case
Example Problem Table 1.6 : 2 inputs – 1 output Case
Efficiency Frontier E A D A1 F C 0 Figure 1.7 : Efficiency of DMU A
BCC model Variable Returns to Scale
BCC model: Dual Problem
Efficiency Frontier of CCR model Efficiency Frontier of BCC model (B) d c Output b (C) a (A) 0 Input Figure 2.1 : Efficiency Frontier and Production Possibility Set
Efficiency Frontier of CCR model Efficiency Frontier of BCC model f g g E c b b h h i i d e j j k P 0