Application of Data Envelopment Analysis Approach to Improve Economical Productivity of Apple Fridges

ABSTRACT: This study utilizes non-parametric technique of data envelopment analysis to examine the efficiencies of apple fridges using production and cost data for individual units. Data used in this study were obtained from 18 apple fridges in Tehran province, Iran. The results revealed that, total cost of production was averagely as 59.6 $ per 1000 kg of processed product. Also the results of efficiency analysis with data envelopment analysis (DEA) showed that, 5 units were recognized as efficient units on the basis of variable returns to scale assumptions. The technical, pure technical and scale efficiencies of units were found to be 0.76, 0.84 and 0.89, respectively. Moreover, total cost in target condition was calculated as 1295.70 MJ ha-1; accordingly, about 13% from total cost in present condition could be saved if the units follow the input package recommended by the study. From total cost saving, the highest share was obtained by labor (68%), followed by building rent (20%) and depreciation of equipments (8%), respectively. Applying a better machinery management technique to reduce human labor requirement may help to save the input costs for apple fridges and to improve the economical productivity of units.