Journal of Engineering and Applied Sciences

Year: 2017
Volume: 12
Issue: 22
Page No. 6112 - 6117

Investigating the Effect of Price Adjustment in the Efficiency of Industrial Units using Data Envelopment Analysis Method

Authors : Behnam Zahiri and Reza Maddahi

Abstract: In the present research a method has been proposed to adjust price of products regarding the concept of efficiency in data envelopment analysis. For this, fifteen different types of tiles from different tiling factories have been considered as decision making units. Further, BCC input oriented model has been used to calculate efficiency of units in which the price of each product has been considered as the input and four indices of water absorption, bending strength, abrasion resistance and breaking strength have been considered as the output of data envelopment analysis model. The obtained results indicate that some countries after price adjustment have faced reduction in efficiency which this is due to change in quality of products. Yet, in some others, the price adjustment has not led to reduction in efficiency of product. These results assist the purchasers to select the most suitable company to purchase their product in case of price adjustment.

How to cite this article:

Behnam Zahiri and Reza Maddahi, 2017. Investigating the Effect of Price Adjustment in the Efficiency of Industrial Units using Data Envelopment Analysis Method. Journal of Engineering and Applied Sciences, 12: 6112-6117.

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