Resource efficiency profiling

Abstract

Consider a set of decision-making units (DMUs, e.g. branches ,departments, firms) which employ a variety of resources to produce multiple outputs. The units being compared may be in the public sector e.g. health or education, so that the outputs and inputs need not be measured in monetary terms. We present two methods for evaluating the relative efficiency with which each individual resource input is utilised at each organizational unit. Unlike DEA (data envelopment analysis) a large data set is not required and the discriminatory power is shown to be higher.