Efficiency Estimation in Production

The basic tool for an efficiency measurement is production function. A production function is a relationship that explains how inputs are combined to obtain a maximum possible output. This assumption assumes that the firm under consideration are technically efficient. We can say that a mechanic or organization is technically efficient, if it is adequate to meet the demands put before it or it stands up to the claims made from it. The present works of the research is aimed at constructing and solving the linear programming problems to estimate the Technical, Scale, Allocative and Overall Productive Efficiencies for certain Manufacturing Sections from different states of India.