Journal of Information Technology Services (한국IT서비스학회지)

Korea Society of IT Services (한국IT서비스학회)
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The Efficiency Assessment of the Iron Ore Brands Using DEA-AR Model in an Integrated Steel Mill

DEA-AR 모형을 이용한 일관제철소 철광석 브랜드별 효율성 평가

  • Received : 2013.07.27
  • Accepted : 2013.11.05
  • Published : 2013.12.31
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Abstract

This paper proposes a DEA-AR model for the efficiency evaluation of the iron ore brands in an integrated steel mill. The input factor is defined as unit cost of each brand based on CIF and two output factors are chosen as Fe and Al which are the important ingredients of iron ore. The relative importance between two output factors is determined by several experts using AHP model. The efficiency of each brand is determined using DEA and DEA-AR models. The negative correlation between the DEA-AR efficiency and the unit cost (CIF) is shown as significant whereas no significant correlation exist between the efficiency and the output factors. Also, the Kruskal Wallis rank sum test shows that there exist efficiency differences among the iron ore types whereas no difference is shown among the countries. The result could be utilized in selecting good brands of iron ores based on the DEA-AR efficiency in an integrated steel mill.

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References

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