What do CCR and BCC models mean in DEA?

CCR model assumes that DMU is under the condition of fixed scale compensation and is used to measure the total efficiency.

The BCC model assumes that DMU is in the situation of variable scale income, which is used to measure pure technology and scale efficiency.

As a method to deal with multi-objective decision-making problems, the advantages of DEA are mainly reflected in the following three points:

1. There is no need to assume any weight. The optimal weight of each input-output is obtained from the actual data of the decision-making unit, which can avoid subjective factors.

2. Taking the weight of each input and output of the decision-making unit as a variable, the evaluation is made from the most favorable angle for the decision-making unit, avoiding the weight of each index in the sense of priority.

3. Assuming that each input is related to one or more outputs, there is a certain relationship between input and output, and DEA method does not need to determine the explicit expression of this relationship.

Extended data

DEA is a linear programming model, expressed as the ratio of output to input. By comparing the efficiency of a specific unit with the performance of a group of similar units providing the same service, it tries to maximize the efficiency of service units. In this process, some units with an efficiency of 100% are called relatively efficient units, while others with an efficiency score lower than 100% are called inefficient units.

In this way, enterprise managers can use DEA to compare a group of service units, identify relatively inefficient units, measure the severity of inefficiency, and find ways to reduce inefficiency by comparing inefficient and efficient units.

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