The analysis finds the 'best' virtual producer for each real producer. A fundamental assumption behind this method is that if a given producer, A, is capable of producing X units of output with Y inputs, then other producers should also be able to do the same if they were to operate efficiently. ![]() The producer is usually referred to as a decision making unit or DMU. ![]() In comparison, DEA uses an extreme point method and compares each producer with only the "best" producers. A typical statistical approach uses a central tendency approach which evaluates producers relative to an average producer. Data Envelope Analysis is commonly used to evaluate the efficiency of a number of producers. These can be business units such as points of sales, branches, franchisees, departments, and public agencies. ![]() Data Envelopment Analysis is a powerful method widely used in the evaluation of performance of Decision Making Units (DMUs). Data Envelope Analysis (DEA) for Excel is a sophisticated analysis add-in that produces extensive results for the main DEA models used today and automatically creates Excel charts.
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