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Measuring Production Efficiency In The Greek Food Industry

In: Supply Chain And Finance

Author

Listed:
  • A. Karakitsiou

    (DSS Laboratory, Department of Industrial and Production Engineering, Technical University of Crete, Greece)

  • A. Mavrommati

    (DSS Laboratory, Department of Industrial and Production Engineering, Technical University of Crete, Greece)

  • A. Migdalas

    (DSS Laboratory, Department of Industrial and Production Engineering, Technical University of Crete, Greece)

Abstract

Despite of the high rate of economic growth which the Greek Food industry has achieved in last decades it is clear that those benefits have not been distributed evenly. The Greek Food Sector still remains concentrated in centralized regions. The primary purpose of this study is to measure the technical efficiency in Greek Food Industry. Unlike past studies this study decomposes technical efficiency into its pure technical efficiency and scale efficiency, using a non-parametric linear programming approach called Data Envelopment Analysis. The DEA is a modeling methodology for deriving the relative efficiency of units where there are multiple incommensurate inputs and outputs. The evidence suggests that at least at the aggregate level, the major part of technical efficiency in Greek food sector is due to scale inefficiencies, i.e., a consequence of wrong size election. Therefore, there are significant possibilities for the Greek food sector to increase its competitiveness by changing size.

Suggested Citation

  • A. Karakitsiou & A. Mavrommati & A. Migdalas, 2004. "Measuring Production Efficiency In The Greek Food Industry," World Scientific Book Chapters, in: Panos M Pardalos & Athanasios Migdalas & George Baourakis (ed.), Supply Chain And Finance, chapter 8, pages 137-151, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812562586_0008
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