Measuring efficiency in Malaysian palm oil production using CCR and BCC DEA models
DOI:
https://doi.org/10.55573/JISED.118772Keywords:
Data Envelopment Analysis, CCR Model, BCC Model, Super-Efficiency, Technical Efficiency, Palm Oil, MalaysiaAbstract
This study aims to determine the top ten palm oil-producing states in Malaysia by analyzing a dataset comprising inputs and outputs of palm oil production from various sources in the year 2022. The study unfolds in three phases: the application of BCC and CCR Input-oriented data envelopment analysis model were used to identify the most efficient state of crude oil production in Malaysia individually and a comparative analysis using Super Efficiency Model in the final phase to rank the efficient DMUs from first and second phase. The conclusive findings identify Perak as the most efficient state consistently across both models. The study emphasizes the importance of selecting an appropriate DEA model for precise efficiency evaluations. Recommendations for future research include a focus on firm-level factors influencing efficiency in industrial palm oil production. This journal article contributes valuable insights into the palm oil industry, facilitating informed decision-making for sustainable and efficient production practices.
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