Efficiency of Small-and Medium-sized Tofu Enterprises (SME) in Salatiga using Data Envelopment Analysis (DEA)

Abstract

The rise of US Dollars exchange rate to Rupiah in September 2013 has had an impact on all industries in Indonesia, especially tofu enterprises. The rising prices of raw materials require them to have an ability to survive and remain competitive. Productivity is one of the main indicators to estimate the ability to survive and compete. They have to be able to maximize the output utilizing the limited resources (input). Data Envelopment Analysis (DEA) using Banxia Frontier Analysis 3 Software helps to evaluate relative productivity of several Small and Medium-sized Enterprises (SME). The samples of this research are 31 of 66 Tofu SMEs in Salatiga. Constant Return to Scale (CRS) and Variable Return to Scale (VRS) models oriented in the output were used in this research. The finding shows that 2 SMEs were efficient in overall, 4 SMEs were efficient in scale, 8 SMEs were technically efficient and 23 SMEs were inefficient. For those which are inefficient can refer to the efficient SMEs to improve their efficiency by lessening input factors and maximizing output factors.