DEA will show all but one operating unit to be relatively inefficient in the case where an operating unit produces the most of every output and also consumes the least of every input.

Question

Quizplus · Accepted Answer

In Data Envelopment Analysis (DEA), an operating unit that produces the most output with the least input is considered the most efficient. Other units are compared against this benchmark, often showing them to be relatively inefficient due to their inability to produce as much output with their inputs or because they consume more inputs to produce a similar level of output.

DEA Will Show All but One Operating Unit to Be