Darold T. Barnum & John M. Gleason
The views expressed in this report represent those of the author(s) and not necessarily those of the Great Cities Institute or the University of Illinois at Chicago.
This paper 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 mass transit agency.