An integrated simulation and data envelopment analysis in improving SME food production system

Ruzanita Mat Rani, Wan Rosmanira Ismail, Izzaamirah Ishak

Research output: Contribution to journalArticle

6 Citations (Scopus)

Abstract

Small and Medium Enterprises (SMEs) food manufacturing sub-sector contributes to the growth of national economy. Food manufacturing has the potential to grow due to increase in human population and changes in living standards and lifestyles. In order to ensure a balance between the growth of food manufacturing and also the quality of food products, the enhancement and improvement of the food manufacturing system need to be done. A case study of the SME food production company is modeled and analyzed in order to improve the performance of the system using simulation. The problems faced by the SME food production system is identified and a template of actions is obtained from the simulation results. Five improvement models are developed with several modifications on the original simulation model. In order to determine the efficient improvement models, Data Envelopment Analysis (DEA) model BCC with output orientation is used. Cross efficiency and Super efficiency-BCC methods is used to rank the improvement models and to select the best improvement model. DEA application in the final step is seen as a complementary approach to strengthen the decision in ranking the improvement models and in selecting the best improvement model.The application methods and the results obtained can assist the management of the company to make better decisions and can provide ideas to other SME companies for enhancing and improving the performance of food manufacturing systems.

Original languageEnglish
Pages (from-to)136-147
Number of pages12
JournalWorld Journal of Modelling and Simulation
Volume10
Issue number2
Publication statusPublished - 01 Jan 2014

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All Science Journal Classification (ASJC) codes

  • Modelling and Simulation
  • Engineering(all)

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