Abstract

A combination of product selection is one of the decision that are difficult to be determined especially in SME’s food manufacturing company that produces different types of food products. Making a wrong decision in the combination of product selection will affect company profitability. In this study, computer simulation, Multiple Criteria Data Envelopment Analysis (MCDEA), BCC output-oriented and cross efficiency is proposed to determine the efficient combination of product alternatives and to rank the combination of product alternatives. Six combinations of product alternatives are identified and with the assistance of computer simulation, inputs and outputs are generated. Inputs used are cost and work in process while revenue, average operator utilization and total production are outputs. The study was conducted at one of SME’s food manufacturing companies. The results show that the production of the same types of food product is chosen as the best combination of products. The proposed methods are systematic and comprehensive, especially when adopt to SME’s.

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