APPLYING THE METHODOLOGY DATA ENVELOPMENT ANALYSIS IN THE DEFENCE SECTOR: LITERATURE REVIEW

Abstract

In solving the problems, decision-makers should take into account the qualitative and the quantitative aspects. The discipline of operational research with its methods and techniques help decision-makers in making better decisions. One of its leading methodologies is the non-parametric methodology data envelopment analysis (DEA), which can be used in evaluating the efficiency of entities (decision-making units – DMUs) that use the same inputs to produce the same outputs. According to the last DEA bibliography published in 2017, from 1978, when the seminal paper of DEA was published, until the end of the 2016, there was rapid increase in the published articles in journals. DEA is applied in various areas: agriculture, defence sector, education, energetics, healthcare, public policy, sport, transportation, etc. In this paper we provide a literature review on the DEA application in the defence sector. Most of the analyzed articles have been published in journals, and we focus on the country where the research was conducted, the observed period, the sample of analysis, the used model, and the application.