On The use of modified data envelopment analysis models for product line selection

ABSTRACT: The process of converting the raw materials to a final product in a factory is called production line. These processes include refinement, purification and assembly. Afterward, selection of best production line would be the next step which leads to determining the best product. Now to make the choice easier this thesis proposes a method based on Data Envelopment Analysis (DEA) for product line selection. DEA is a technique based on simple linear programming. This method is often used to measure the performance of Decision Making Units (DMUs) and to choose the most efficient ones which could generate multiple outputs via multiple inputs. DEA has been used in different sciences from mechanical and industrial engineering to economics and finance and results show that the accuracy of method is substantial. The method has not been applied to product line selection problem before, though. Hence this study tries to investigate the matter on product line selection problem by testing the DEA methodology. To generate the evidence in a quantitative manner, a real life sample is discussed and the results are argued. The results of this study are expected to be used by managers to make the correct decisions in order to achieve both maximum consumers' satisfaction and maximum profitability. Keyword: Product Line Selection, Data Envelopment Analysis, Linear Programing. …………………………………………………………………………………………………………………………………………………………………………………………………………