Volume 19, Issue 2 (4-2022)                   jor 2022, 19(2): 39-56 | Back to browse issues page


XML Persian Abstract Print


Download citation:
BibTeX | RIS | EndNote | Medlars | ProCite | Reference Manager | RefWorks
Send citation to:

Ghayeghran Sarab R, Malek A, Amirteimoorii A, Kordrostami S. Calculating the Scale Elasticity in Cost Efficiency, Applied in Iranian Sugar Mills. jor 2022; 19 (2) :39-56
URL: http://jamlu.liau.ac.ir/article-1-2000-en.html
Department of Applied Mathematics, Rasht Branch, Islamic Azad University, Rasht, Iran, Faculty of Mathematical Sciences, Department of Applied Mathematics, Tarbiat Modares University, Tehran, Iran
Abstract:   (881 Views)
Returns to Scale studies output variations with respect to input changes, which is presented both qualitatively or returns to scale (RTS), and quantitatively or scale elasticity (SE). This paper describes SE and then SE in cost efficiency (CE) models and uses data envelopment analysis (DEA) approach to calculate them. Since the sugar industry plays a significant role in the Iranian economy, the efficiency and CE of sugar mills are of crucial importance to prevent the waste of resources and to save on production costs, respectively. For this purpose, the SE in cost efficiency model is considered for fifteen sugar mills, which process raw sugar beets. We obtain the SE of these mills before and after the image of inefficient units on the technical and cost-efficient frontier. It is found from their scale elasticity that their RTS are constant. In this paper, the methods for integrating and normalizing many parameters with different measurement units to a smaller set are described. “Eighteen inputs-four outputs” are consolidated into “four inputs-one output” categories. Also, the methods for calculating the price per unit based on the total price are explained.
Full-Text [PDF 1137 kb]   (429 Downloads)    
Type of Study: Research | Subject: Special
Received: 2020/11/1 | Accepted: 2021/05/9

Add your comments about this article : Your username or Email:
CAPTCHA

Send email to the article author


Rights and permissions
Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.