Data envelopment analysis is a very useful tool used by various companies to help them in making decisions about various products and their values and their chance of profit in the market. Data Envelopment Analysis (DEA) is a relatively new “data oriented” approach for evaluating the performance of a set of peer entities called Decision Making Units (DMUs) which convert multiple inputs into multiple outputs.

DMUs can be of various types and are generally used for evaluation of various kinds of entities including, but not limited to, cities, business firms, courts, hospitals, academic institutions, air force wings and also for a whole state or country.

Sample Data Envelopment Analysis

Data envelopment analysis for- Rakish group of Hospitals.

Date of submission of data envelopment analysis- 30th June 2012.

Data envelopment analysis created by- Arian Logistics, California

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Purpose- To gain exact information about the success of the Decision making units of the hospitals of the company and how much these plans and projects have helped in increasing the net profit of the company and patient satisfaction level.

Chart for the data envelopment analysis of the company

The following tools have been used to make the data envelopment analysis. The tools, along with their purpose and definition are provided for reference. In case of problems, user may also consult our website for more information.

(Efficiency): Full (100%) efficiency is attained by any DMU if and only if none of its inputs or outputs can be improved without worsening some of its other inputs or outputs.

(Relative Efficiency): A DMU is to be rated as fully (100%) efficient on the basis of available evidence if and only if the performances of other DMUs does not show that some of its inputs or outputs can be improved without worsening some of its other inputs or outputs.

Efficiency 78%
Relative efficiency 93%
Net DMU 89%

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