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What is Data Envelopment Analysis?

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data Envelopment analysis with Maple in OR and Modeling CoursesIntroductionWhat is data Envelopment analysis ? data Envelopment analysis (DEA), occasionally calledfrontieranalysis, was first put forward by Charnes, Cooper and Rhodesin 1978. It is a performance measurement technique which canbe used for evaluating the relative efficiency of decision-makingunits (DMU s) in organisations. John Beasley From the field of combustion engineering, efficiency is theratio of the actual amount of heat liberated . . . to the maximumamount which could be liberated . A. Charnes, W. Cooper,and E. RhodesData Envelopment analysis with Maple in OR and Modeling CoursesExampleBatter DataWhom to trade?Choose from among three players: data :Player A: 100 at-bats for 40 singles & 0 home runsPlayer B: 100 at-bats for 20 singles & 5 home runsPlayer C: 100 at-bats for 10 singles & 20 home runsAnalysis:Player A: no combination ofBandCcan equalAPlayer B:44%A+ 25%C=Bfor a69% efficiency index Player C: no combination ofAandBcan equalCData Envelopment analysis with Maple in OR and Modeling CoursesExampleGraphical analysis (2-D) data Envelopment analysis with Maple in

Data Envelopment Analysis (DEA), occasionally called frontier analysis, was first put forward by Charnes, Cooper and Rhodes in 1978. It is a performance measurement technique which can be used for evaluating the relative efficiency of decision-making units (DMU’s) in organisations.” — John Beasley

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