Automakers Clustering based on Economic Production Functionusing Data Envelopment Analysis

DEA-based clustering approach reveals the input–output relationships hidden inthe data items of input and output. DEA-based clustering approach employs thepiece-wise production functions derived from the DEA method to cluster the carcompanies. Estimate production function for each car company by input-outputdata is the benefit of this method. Thus, each car company (like Saipa) not onlyknows the cluster that it belongs to, but also checks the production function typethat it confronts. It is important for managerial decision-making in different fieldswhere decision-makers are interested in knowing the changes required incombining input resources.