Measurement of intermediary trader efficiency in poultry distribution using data envelopment analysis method

Abstract

The in-efficiency in resource usage are still common problems in poultry industry. Inefficiency in operational distribution system made the price of meat were so expensive at end customer. Increased efficiency is needed to improve competition capabilities. This research aims to measure the relative efficiency of intermediary trader in poultry product by using Data Envelopment Analysis (DEA) and formulate recommendation based on result of DEA. The result of data processing shows that 3 of 11 intermediary classified as inefficient group. These intermediary trader group should increase their relative efficiency by aligning the influencing input variable of distribution cost and overhead cost.