Measuring Technical Efficiency and Productivity of KSK Food Products Distributors in Metro Manila Area 2017 – 2018: An Application of Slack-Based DEA Model
This paper estimates relative efficiency and productive performance of 4 Distributors of KSK Food Products in Metro Manila, using Slack-Based Data Envelopment Analysis model. DEA is a management evaluation tool that assists with identifying the most efficient and inefficient decision-making units (DMUs) in the best practice frontier. Total Factor Productivity (TFP) is measured for a sample of 4 Distributors of KSK over the period 2017 - 2018. Empirical results show that the main contributing factor to TFP growth is efficiency change. This is meant that KSK Distributors are technically operating efficiently in the frontier technology; though, there is a downward shift in the technological advancement. Our results further imply that with the use of output-input mix, KSK Distributors as a whole has recorded a high level of technical efficiency than innovation. These new findings contribute significantly to the existing literature on efficiency and productive performance in the manufacturing and retail sector.
Keywords – Manufacturing, Retail Sector, Data Envelopment Analysis, Total Factor Productivity, Technical Efficiency, Technological Change