Supply Chain Lab DEA Efficiency Frontier Lab Home
Capacity & Operations

DEA Efficiency Frontier

Eight warehouses each turn money and people into shipped orders - who is actually efficient? DEA builds a best-practice frontier from the data itself, scores every site by how far it sits from that frontier, and names the real peers each laggard should copy.

How to use it

Warehouse efficiency frontier

Data (per month)

SiteCost $kStaffOrders kScore

Reading a score

Click any row.

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Weakest score
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Fleet average
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Recoverable input

Axes are inputs normalised per 1k orders (constant returns to scale). Lower-left = better. The red frontier is the convex hull of best practice; the dotted ray is the selected site’s radial path to it.

Try these experiments

  1. Give one site absurdly low cost but huge staff - it can still be 100% efficient. DEA lets every DMU pick the weighting that flatters it most.
  2. Delete-the-star test: make the best site terrible and watch every score change. Efficiency here is relative, never absolute.
  3. Find a site at 85%: the tile shows exactly how much cost + staff it should shed with zero loss of throughput - that’s the audit conversation.

About this tool

The concept

Data Envelopment Analysis compares units that turn multiple inputs into outputs. No prices, no weights imposed - the data itself envelops a best-practice frontier.

How it works

CCR input orientation, two inputs one output: normalise inputs per unit of output, build the convex hull, and score each site by how far its ray can contract before hitting the frontier.

Winning strategy

Use DEA to find who to copy, not just who to blame: an inefficient site’s peers are real, comparable operations whose blend defines its target.

Background: Data envelopment analysis · Charnes, Cooper & Rhodes (1978)