| title | author | date |
|---|---|---|
Data Envelopment Analysis (DEA) |
EPonkratova |
December 28, 2018 |
The project was done to explore the optimiztion techniques, data envelopment analysis, in particular.
- Data Envelopment analysis was used by Chames, Cooper and Rhodes in 1978 to evaluate educational programs for disadvantaged students but later being adopted by the private sector to measure units’ efficiency productivity.
- Efficiency in DEA is defined as the ratio of the weighted sum of outputs of a unit to its weighted sum of inputs. A unit is deemed to be efficient if it is not possible to find a mixture of proportions of other units whose combined inputs do not exceed those of the unit being considered, but whose outputs are equal to or exceed, those of the unit. Should this not be possible, then the unit is deemed to be inefficient. Watch here, the productivity of those units which got a 100% efficiency score can be improved even further by introducing some technological changes.
- Management can use the results of DEA to (1) locate inefficient units that require remedial management actions and do more targeted resource allocation; (2) reward the more efficient managers;(3) identify best practices to be introduced into less efficient branches; (4) set performance targets, among others.
The story behind the idea is @ https://medium.com/@eponkratova/whos-better-who-s-best-data-envelopment-analysis-a-non-mathematical-introduction-4986184f9ea3 (part 1), https://medium.com/@eponkratova/what-must-we-know-and-know-how-to-implement-and-interpret-data-envelopment-analysis-3517a6231be9 (part 2)
The interactive visualization is available @ https://eponkratova.github.io/data_envelopment_analysis/