Analysis of supply chain institutional efficiency performance in potato chips SMEs clusters after Covid-19 pandemic

Abstract

The pandemic conditions in 2020-2021 resulted in problems for the potato chip micro, small, and medium-enterprise (SMEs) cluster, including an imbalance in sales numbers with the resulting production due to a drastic decline in demand, marketing, and business performance. The first trimester of 2022 shows an increased demand for potato chips. Therefore, efficient performance is needed to support production recovery and business performance by increasing supply chain institutional efficiency. This research aimed to analyze the efficiency performance value and the sub-variables input with the most influence on supplier efficiency performance. This research used the Data Envelopment Analysis (DEA) model CCR-I Dual with input sub-variables (i.e., cash-to-cash-cycle-time, lead time, and flexibility) and output sub-variables (i.e., percentage of conformance quality standards, order fulfilment, and delivery performance). The analysis was carried out on the flow of suppliers to potato chip MSMEs. The results show that 8 decision-making units (DMUs) were inefficient (55.56% and 33.33%), and 1 DMU was in efficient condition (100% green), namely is DMU 6. The results also show that the input sub-variable with the most influence on supplier efficiency performance was the flexibility of sending raw materials followed by cash-to-cash-cycle-time.

Keywords

• data envelopment analysis
• efficiency
• potato chips
• msme clusters
• supply chain institutional performance