Efficeny measurment in manufacture of basic iron and steel and ferro-alloys by stochastic data envelopment analysis

The efficiency of an establishment depends on obtaining the maximum output by using the minimum input. The effectiveness can be achieved by savings in raw material, labor, energy, etc. in order to produce the highest output.Data Envelopment Analysis (DEA) is a technique used in the evaluation of the efficiencies of decision making units (DMUs) that use multiple inputs for producing multiple outputs. The inputs and outputs are deterministic in classical DEA, therefore the changes in exchange rate, inflation rate, etc. aren?t considered, and the precautions for future inconsistencies are not foreseen. This leads to critics of deterministic DEA models.In this thesis, the additive model developed depending on the BCC model is extended by chance constrained programming formulations in order to overcome the insufficiencies in deterministic DEA, and the technical analysis of ?Manufacture of Basic Iron and Steel and Ferro-Alloys? sector is performed. Inefficient DMUs were determined and after that, in order to overcome the inefficiency, reference DMUs are determined, and potential improvement is realized for inefficient DMUs by considering the reference DMUs.