DEA efficiency analysis involving multiple production processes

Abstract

This article addresses Data Envelopment Analysis (DEA) efficiency analysis in organizations with multiple production processes. It shows how to measure the impact on an organization's overall efficiency of (a) inefficient and superefficient subunits and (b) the efficiency with which input resources are allocated to the subunits. It introduces a simple model for efficiently allocating inputs among subunits and applies the entire analytical process to a large urban transit agency.