Data Envelopment Analysis (DEA). Identifying Efficient Decision Making Units. Measuring Service Productivity Branch Bank Example. 1. ACCOUNTING RATIO : COST PER TELLER TRANSACTION HIGHER RATIO WOULD BE INEFFICIENT RELATIVE TO OTHERS, BUT COULD BE EXPLAINED BY:
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Identifying Efficient Decision Making Units
1. ACCOUNTING RATIO: COST PER TELLER TRANSACTION
HIGHER RATIO WOULD BE INEFFICIENT RELATIVE TO OTHERS, BUT COULD BE
1. MIX OF OUTPUTS (SELLING CD’S VS SIMPLE DEPOSITS)
2. MIX OF INPUTS (USE OF ATM’S AND LIVE TELLERS)
2. BROAD BASED MEASURE: RETURN ON INVESTMENT
OVERALL IMPORTANT BUT NOT SUFFICIENT TO EVALUATE OPERATING EFFICIENCY
OF INDIVIDUAL DECISION MAKING UNIT (DMU)
A PROFITABLE BRANCH COULD BE THE RESULT OF HIGHER-THAN-AVERAGE
PROPORTION OF REVENUE GENERATING TRANSACTIONS RATHER THAN
COST-EFFICIENT USE OF RESOURCES.
C (5.3, 88.9)
potential stars group
Branches for divestiture