At its core, envelopment is a way to find the "best of the best" in a group. Imagine plotting the performance of several businesses on a graph. DEA draws a "frontier" or a boundary line that "envelopes" all the data points. sit directly on this boundary.
💡 The ultimate purpose of envelopment is to turn data into a roadmap for improvement, moving every unit closer to that "efficient frontier." envelopment
Measuring Excellence: An Introduction to Data Envelopment Analysis At its core, envelopment is a way to