Measurement the efficiency of dairies in the Kars province with data envelopment analysis

Abstract

In this study, 20 dairies in Kars province, values of the efficiency put forward by Data Envelopment Analysis method was attempted. Three inputs and one output used and output-oriented model is established. Efficiency scores are obtained by the dairies. Analysis is solved using the method in two different ways, CCR and BCC method. Differences between methods were compared. The results of the CCR model are found to be applicable. Potential improvements were obtained for inefficient enterprises. Considering an annual capacity of milk processing enterprises divided into four groups according to the size scale. Efficiency scores of groups were compared. In study 6 decision making unit found efficient, two in the first group, two in second group, one in the third and one in the fourth group. In the calculation one effective decision making unit found from each group. Improvements were calculated for the inactive decision making units. BCC model results were found not suitable in practice. Improvements were calculated to inefficient enterprises take on efficiency frontier and direction of returns to scale according to the results of the CCR model.