[PDF][PDF] Data envelopment analysis: The efficiency study of food industry in Indonesia

A Machmud, E Ahman, PD Dirgantari… - Journal of …, 2019 - jestec.taylors.edu.my
Journal of Engineering Science and Technology, 2019jestec.taylors.edu.my
This study aimed to determining and analyse the level of efficiency of the food industry in
Indonesia using Data Envelopment Analysis (DEA). This study was motivated because there
is a suboptimal condition in the food industry in Indonesia. The research method used an
analytical descriptive method, which employed data collection techniques through
interviews, questionnaires, and literature studies. Data were obtained from the leading food
industry players in Indonesia (about 16 companies). Data were collected and analysed …
Abstract
This study aimed to determining and analyse the level of efficiency of the food industry in Indonesia using Data Envelopment Analysis (DEA). This study was motivated because there is a suboptimal condition in the food industry in Indonesia. The research method used an analytical descriptive method, which employed data collection techniques through interviews, questionnaires, and literature studies. Data were obtained from the leading food industry players in Indonesia (about 16 companies). Data were collected and analysed using DEA through Constant Return to Scale (CRS) and Variable Return to Scale (VRS) models. The study results showed that the use of food industry production factors in Indonesia is not yet optimum, confirmed by the VRS and CRS values of less than one. The main reason for the suboptimal production is due to the condition of raw materials and labour, giving ideas for the consideration careful improving the efficiency in the production are This finding implies that creating efficiency with the Data Envelopment Analysis method needs to optimize the use of raw materials and labour.
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