L47: Data envelopment analysis | example with multiple inputs & outputs
Welcome to Lecture 47 of the course "Business Analytics" by Prof. Rahul R Marathe.
Full Course: https://study.iitm.ac.in/ds/course_pa...
Video Overview
This lecture explores Data Envelopment Analysis (DEA) in a multi-input, multi-output scenario. We evaluate the efficiency of various sales offices, each with different budgets and team sizes, aiming to optimize outputs like sales and leads. Since graphical methods are no longer feasible, we formulate and solve linear programming problems for each Decision-Making Unit (DMU) to calculate efficiency scores. The session walks through how to set up these optimization models in Excel and interpret the impact of weight choices on results. This is a practical look at applying DEA for performance benchmarking and resource evaluation in real-world business settings.
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