Comparing products using Data Envelopment Analysis

Comparing products using Data Envelopment Analysis

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Article ID: iaor19921573
Country: United Kingdom
Volume: 19
Start Page Number: 631
End Page Number: 638
Publication Date: Dec 1991
Journal: OMEGA
Authors: ,
Keywords: performance
Abstract:

Using an application of linear programming known as Data Envelopment Analysis (DEA), a method is described to compare products which vary in excellence along a number of dimensions, and for each of which there might be a number of associated ‘costs’. The method is illustrated by comparing published benchmarks of 37 computer printers. Potential uses of a DEA analysis of products might be: to assist corporate buyers who may need to reconcile a diversity of present and future uses in one standardised purchase; in competitor analysis; in determining unexplored market niches; and as a normative model of product excellence against which product purchasing behaviour could be compared.

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