Production Efficiency of Sugar Factory of Bangladesh: An Application of Data Envelopment Analysis

Md. Nazmul Islam
Md. Nazmul Islam
Mawlana Bhashani Science and Technology University Mawlana Bhashani Science and Technology University

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Production Efficiency of Sugar Factory of Bangladesh: An Application of Data Envelopment Analysis

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Abstract

Measuring the efficiency of production departments is an important part of promoting and maintaining efficient operations. Dataenvelopment analysis (DEA) is a linear programmingbased technique which mirrors the capability of a decision making unit to attain the highest level of output from a given set of inputs.. To measure the efficiency, we have considered the use of sugarcane and crushing days as in put-variable and the amount of sugar production as an output-variable. About 99.6 percent of variations in the output variable was explained by these explanatory input variables (R2 = 99.6 percent).Applying DEA under CRS technology assumption, average production efficiency score is.97 in the sugar units .This indicates that on an average, the firms could increase their output by 3 percent with the existing level of inputs. Out of 10 sugar units,4 units showed significant decrease in efficiency.TSM had used excess 8.90 percent sugarcane and 31.20 percent crushing days due to production inefficiency and this unit would be able to increase sugar production by 9.77 percent as compared to peer units.

References

6 Cites in Article
  1. T Coelli (1996). A Guide to DEAP Version 2.1: A Data Envelopment Analysis.
  2. A Dwivedi,P Ghosh (2014). Efficiency Measurement of Indian Sugar Manufacturing Firms: A DEA Approach.
  3. M Ferrantio,G Ferrier (1995). The Technical Efficiency of Vacuum-Pan Sugar Industry of India: An Application of a Stochastic Frontier Production Function Using Panel Data.
  4. R Joshi,S Singh (2009). Garment Production Systems.
  5. S Majumdar (1994). Assessing firm capabilities: theory and measurement, a case study of Indian Pharmaceutical industry.
  6. S P Sing (2006). CSR activities in Sugar Mills during the Covid 19: A case study of Uttar Pradesh.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Md. Nazmul Islam. 2015. \u201cProduction Efficiency of Sugar Factory of Bangladesh: An Application of Data Envelopment Analysis\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 15 (GJMBR Volume 15 Issue D1).

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
Classification
GJMBR-D Classification JEL Code: M49
Version of record

v1.2

Issue date
April 4, 2015

Language
en
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Production Efficiency of Sugar Factory of Bangladesh: An Application of Data Envelopment Analysis

Md. Nazmul Islam
Md. Nazmul Islam <p>Mawlana Bhashani Science and Technology University</p>

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