ABSTRACT
This chapter attempts to use the method of Data Envelopment Analysis (DEA) to suggest a possible quantifiable measure of agility. It presents a background on DEA and its theory development. DEA analysis provides a relative efficiency rating of companies. Various management implications can be applied when reviewing the efficiency of companies. Since agility concerns business operations in the face of unanticipated change, a more relevant measure would be how that company responds in the face of yearly changes in sales. DEA has the advantage that no assumptions are required on the functional form. The geometry of the envelopment surface which characterizes efficiency and identifies inefficiencies is prescribed by the specific DEA model employed. DEA analysis provides a relative efficiency rating of companies. Various management implications can be applied when reviewing the efficiency of companies. The data used in DEA analysis was based upon the COMPUSTAT and VANTAGE databases.
