scholarly journals A DEA approach for merging dairy farms

Author(s):  
Sebastian Lozano ◽  
Belarmino Adenso-Diaz

This paper proposes a model for determining the most advantageous merger within a set of dairy farms. It uses data envelopment analysis (DEA) to estimate the total technical efficiency improvement that the merger would produce and for decomposing it into a learning effect and a pure merger effect. A design of experiments has also been carried to test the effects of various factors (the total number of farms, the standard deviation of herd size, the percentage of farms exhibiting increasing returns to scale, the standard deviation of the current technical efficiency of the farms) on different response variables (the percentage of farms involved in the merger, the reduction of herd size and the efficiency improvement obtained by the merger). The results show that the disparity in the herd size of the farms in a region and the percentage of farms that exhibit increasing returns to scale increase the number of farms that enter into the most advantageous merger. The disparity of herd size also increases the number of cows that are not needed after the merger. Finally, the expected efficiency improvement increases with the total number of farms.

The present study intended to determine the technical and scale efficiency of sample dairy farms for evaluating their performance. Data Envelopment Analysis (DEA) technique was used to estimate the technical and scale efficiency of 80 each of member and nonmember dairy farms in the Pune district of Maharashtra state during 2019. Technical efficiency score further partitioned into pure technical efficiency and overall technical efficiency. The technical efficiency score was more for member dairy farms as compared to the non-members under the assumption of constant return to scale (CRS) and variable return to scale (VRS). It highlighted that the non-members of dairy cooperatives had more potential to reduce the input use without affecting the output level compared to the member group. It was also observed that the technical efficiency under the CRS assumption was more than VRS for both member and non-member groups. It revealed that the farms were scaled inefficient (SE<1) and not operating at optimal scale. The study further revealed a positive relationship between technical efficiency and herd size. It also revealed that the resource-saving potential due to the scale effect. So, it supported the policy of providing technical advice on the use of feed and fodder resources, better management practices, and increasing the herd size to increase the technical and scale efficiency.


2013 ◽  
Vol 689 ◽  
pp. 105-109 ◽  
Author(s):  
Wei Zhong Zhou ◽  
Chun Lu Liu

The efficiency of the construction industry is analyzed based on provinces panel data in China in this paper. The Mean Number of Employee and the Mean Completed Investment are used as inputs. The Mean Actual Sales of Commercial Houses and the Mean Net Profit are used as outputs. Data Envelopment Analysis (DEA) model is used to measure the efficiency of the construction industry. Shanghai and Zhejiang are found technically efficient. Shandong is scale efficient but technology efficiency is lower. There are two provinces are decreasing returns to scale and other provinces are increasing returns to scale. On the whole, the technology efficiency of the construction industry of China is lower. Based on the conclusions, the paper proposes some suggestions to improve the efficiency of the construction industry in China.


Author(s):  
Andreas Dellnitz ◽  
Wilhelm Rödder

AbstractIn data envelopment analysis (DEA), returns to scale (RTS) are a widely accepted instrument for a company to reveal its activity scaling potentials. In the case of increasing returns to scale (IRS), a company learns that upsizing activities improves its productivity. For decreasing returns to scale (DRS), the instrument likewise should depict a downsizing force, again for improving productivity. Unfortunately, here the classical RTS concept shows misbehavior. Under certain circumstances, it is the wrong indicator for scaling activities and even hides respective productivity improvement potentials. In this paper, we study this phenomenon, using the DEA concept, and illustrate it via little numerical examples and a real-world application consisting of 37 Brazilian banks.


2003 ◽  
Vol 19 (4) ◽  
pp. 692-697 ◽  
Author(s):  
Vivian Valdmanis ◽  
Damian Walker ◽  
Julia Fox-Rushby

Objectives: The overall aim of this study is to discern whether and to what degree vaccination sites exhibit constant returns to scale.Methods: Data Envelopment Analysis is used to compare all the facilities in the sample in terms of input costs used to produce multiple outputs. The application considers the Expanded Program on Immunization (EPI), which operated in Dhaka City, Bangladesh, during 1999.Results: A preponderance of EPI sites were determined to be operating at increasing returns to scale.Conclusions: Our findings question the applicability of cost-effectiveness analyses that assume constant returns to scale.


2011 ◽  
Vol 43 (4) ◽  
pp. 515-528 ◽  
Author(s):  
Amin W. Mugera ◽  
Michael R. Langemeier

In this article, we used bootstrap data envelopment analysis techniques to examine technical and scale efficiency scores for a balanced panel of 564 farms in Kansas for the period 1993–2007. The production technology is estimated under three different assumptions of returns to scale and the results are compared. Technical and scale efficiency is disaggregated by farm size and specialization. Our results suggest that farms are both scale and technically inefficient. On average, technical efficiency has deteriorated over the sample period. Technical efficiency varies directly by farm size and the differences are significant. Differences across farm specializations are not significant.


2019 ◽  
Vol 23 (03) ◽  
pp. 1950025 ◽  
Author(s):  
WOJCIECH NASIEROWSKI

This paper presents the results of a comparison of the technical efficiency of innovation approach in Canada to approaches in 41 other countries. Data Envelopment Analysis was used to investigate this subject. Results of simulation experiments were used to anticipate possible general suggestions regarding policy measures that may be considered when exploring means to improve Canadian performance. Data from the World Competitiveness Yearbook and European Innovation Scoreboard were used. Oslo Manual definition of innovations was used. Enablers (context) — difficult to change country characteristics that may impact upon technical efficiency — were entered into the examination. A qualitative overview of the Canadian perspective to innovations supplements the quantitative portion of the presentation. It is observed that return to scale and congestion issues dominate considerations on technical efficiency of innovations. Wealthier countries seem to be less technically efficient in innovations than not so rich ones. Canada operates under Decreasing Returns to Scale. Congestions seem to be the main contributor to inefficiencies. Suggestions regarding the betterment of technical efficiency of innovations in Canada are presented here. Attention was drawn to several questions for further studies on the subject and their importance clarified.


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