Analysis on Efficiency of Food Material Distributors and Food Service Companies by DEA

Abstract

With the interest on operational efficiency due to the rapid growth of food material distribution industry and food service industry, the study adopts DEA (Data Envelopment Analysis) model and examines to measure the technological, pure technical and scale efficiency those companies engaging in the food material distribution and food service business. As a result of analysis, the companies operating integrated business have relatively higher efficiency than those operating only food material distribution or food service companies while the result indicates that three efficiencies don’t have significant difference depending on whether affiliated companies or not. In the results from the measuring by DEA.