18 Questions
What is the goal of Data Envelopment Analysis (DEA)?
Maximize the efficiency of converting inputs into outputs
In DEA, what does 𝜃𝑖 represent in the mathematical formulation?
Efficiency score of DMU 𝑖
What is a key step in the DEA process after defining the DMUs and selecting inputs and outputs?
Data Collection
What does 𝜆𝑗 represent in the DEA formulation?
Weight assigned to inputs
How is each DMU's efficiency measured in relation to the efficient frontier?
By its distance relative to the frontier
Which step in the DEA process involves choosing the appropriate model based on data nature and desired outputs?
DEA Model Specification
What does DEA stand for in the context of supply chain management?
Data Envelopment Analysis
How does DEA identify the most efficient units in a supply chain?
By constructing an efficient frontier based on inputs and outputs
What is the main purpose of DEA in the context of supply chain management?
To determine if a firm is completely efficient or can improve its performance
In DEA, what do inputs typically include when evaluating supply chain efficiency?
Labor and capital factors
How does DEA help inefficient units improve their performance in a supply chain?
By identifying benchmarks set by efficient DMUs
What does the construction of an efficient frontier represent in DEA?
The best performance achievable by DMUs based on inputs and outputs
What does the CCR Model assume in Data Envelopment Analysis (DEA)?
Constant returns to scale (CRS)
In DEA, what does the BCC Model allow for that the CCR Model does not?
Variable returns to scale (VRS)
Which DEA model is more flexible in evaluating entities operating under different scale efficiencies?
BCC Model
What can be multiplied by a constant factor in the CCR Model without affecting efficiency scores?
Both inputs and outputs
Which DEA model evaluates entities assuming they may operate at either increasing or decreasing returns to scale?
BCC Model
What is a characteristic of the BCC Model that distinguishes it from the CCR Model?
Consideration of variable returns to scale
This quiz covers the basic concept of Data Envelopment Analysis (DEA) for measuring efficiency in converting inputs to outputs. The quiz includes a mathematical representation of DEA and the variables involved such as inputs, outputs, efficiency score, and weights.
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