What is Data Envelopment Analysis?
A)A linear programming based approach to determine the relative efficiency of entities with similar goals and objectives.
B)A decision support system that envelops the entire manufacturing and shipping process into an integrated system.
C)An integer linear programming technique involving solving a series of linear programming models and using the solutions as bounds on the integer solution.
D)A form of sensitivity analysis that allows the simultaneous changing of multiple decision variable values.

Question

Quizplus · Accepted Answer

Data Envelopment Analysis (DEA) is a non-parametric linear programming based approach used to evaluate the relative efficiency of decision-making units (DMUs) with similar goals and objectives. It compares the inputs to outputs of a DMU to those of other DMUs in the same group, and identifies the best practices that can be emulated by other DMUs to improve their efficiency. DEA is widely used in performance evaluation, benchmarking, and decision-making in various industries including healthcare, education, banking, and manufacturing.

What Is Data Envelopment Analysis