Efficiency Measurement using Data Envelopment Analysis

In this presentation, we understand how to measure the efficiency in decision making units. For multi-input–multi-output scenario, CCR model is employed to compute the efficiency scores in DMUs. We also see why the CCR model does not addresses the most realistic scenario (variable returns to scale) in determining the efficiency scores of DMUs, and there comes the role of BCC model for computing efficiency in DMUs working under the variable returns to scale. The work is currently under the development.