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Measuring the capacity utilization of the 48 largest iron and steel enterprises in China

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  • Fukuyama, Hirofumi
  • Liu, Hui-hui
  • Song, Yao-yao
  • Yang, Guo-liang

Abstract

This paper aims to investigate the capacity utilization (CU) of selected large Chinese iron and steel enterprises by using the data envelopment analysis (DEA) approach. In this paper, we first propose a DEA model with an unrestricted capacity directional output distance function by incorporating two joint cost disposability relations and differentiating between non-emission-causing inputs and emission-causing inputs. Second, we define the status of decision-making units (DMUs) with excess capacity and design a method to identify insufficient variable inputs. We use a group of 48 largest Chinese iron and steel enterprises as our sample to investigate their performance in terms of CU indicator. The main findings are summarised and can be used to support the corresponding policymaking for the managers of both government and enterprises.

Suggested Citation

  • Fukuyama, Hirofumi & Liu, Hui-hui & Song, Yao-yao & Yang, Guo-liang, 2021. "Measuring the capacity utilization of the 48 largest iron and steel enterprises in China," European Journal of Operational Research, Elsevier, vol. 288(2), pages 648-665.
    • Handle: RePEc:eee:ejores:v:288:y:2021:i:2:p:648-665
    DOI: 10.1016/j.ejor.2020.06.012
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