Measuring Efficiency of the Indian Pharmaceutical Sector with Simple Additive Weighting (SAW) MCDM Method
DOI:
https://doi.org/10.53573/rhimrj.2022.v09i06.007Keywords:
Efficiency, Pharmaceutical Sector, Simple Additive Weighting (SAW), RankingAbstract
This paper measures operational and financial efficiency of selected major Indian pharmaceutical firms up to the year 2021 using a multi-criteria decision-making (MCDM) approach — Simple Additive Weighting (SAW). We construct a set of financial and operational criteria, normalize the data, apply expert weights, and rank firms. The analysis is illustrative and demonstrates SAW as a transparent tool for comparative efficiency assessment. From the SAW ranking, firms with strong profitability (ROE and Net Profit Margin), adequate asset utilization and significant export orientation score higher.
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