DEA is a mathematical quantitative approach for measuring the performance of a set of homogeneous Decision Making Units (DMUs).In engineering applications, DMUs may take such forms as airplanes, technology, facility layout, power plant, data mining.In managerial applications, DMUs may include banks, department stores and supermarkets, and extend to car makers, hospitals, schools, public libraries.Each DMU uses multiple inputs to produce multiple outputs.DEA is a data-oriented method and hence the data (performance measures) play an important role in the obtained efficiency scores.Returns-to-scale refers to the rate by which output changes if all inputs are changed by the same factor.Radial (Technical) efficiency means all inputs can be simultaneously reduced without altering the mix (=proportions) in which they are utilized. The CCR and BCC models measure radial efficiency.The Catch-Up (or recovery) relates to the degree to which a DMU improves or worsens its efficiency.The Frontier-Shift (or innovation) term reflects the change in the efficient frontiers between the two time periods.
Toloo, Dr. Mehdi Associate Professor, "Data Envelopment Analysis: Past, Present, and Future" (2018). Invited Talks. 22.