Data Envelopment Analysis

Data Envelopment Analysis (DEA) is a performance measurement technique used to evaluate the efficiency of organizations, such as businesses or government agencies. It compares multiple decision-making units, considering their inputs (like resources) and outputs (like services or products). DEA identifies which units are operating efficiently and which could improve by analyzing how well they convert inputs into outputs. It helps organizations understand their performance relative to peers, guiding them on where to make changes for better efficiency. Essentially, it’s like benchmarking but done through advanced mathematical methods to ensure fairness in comparisons.