Journal of Operational Research and Its Applications ( Applied Mathematics ) - Lahijan Azad University

This study intends to estimate bias corrected efficiency, technical efficiency, managerial efficiency and thus scale and confidence intervals associated with them, using input oriented data envelopment analysis approach and LSW algorithm. Results show the average of scale efficiency of our country’s industry section is 93% and except for recycling industry (code no. 37), furniture and unclassified artifacts (code no. 36), scale efficiency is more than 90% which indicates the main cause of technical inefficiency in industry sector is managerial inefficiency. Furthermore, almost 15% of our country’s industries are managerially 100% efficient and operate quite successfully and about 5% of industries operate with a managerial efficiency of less than 60% and the lowest managerial efficiency scores are of machinery industries (code no. 2922) and textiles finishing industries (code no. 1712) as lower than 0.3.