Study of the explanatory factors impact of the technical inefficiency of the NAFTAL fuel distribution stations production function. Saida Province, (from 2015 to 2018)

Abstract

Fuel distribution of NAFTAL Company has been done by thirtyfive stations over six provinces (Wilayas) in the West, and in the South
West. There are many factors make the way of managing these stations, complicated, and inefficient, for instance, the spacious area,
and the geographical position. Management complexion causes a real and logistic problem (Service, and Production Machines Number, Stock Capacity, and the Stations Location Importance). The frontier production function estimation, with the use of the stochastic Frontier Analysis method, has been shown, in recorded results, from 2015 to 2018, In addition, it has been demonstrated that, in accordance to Maximum Likelihood method, the frontier production has been applied, and related to the random model.
The annual supplement of 10% to the allocated capital increases the annual turnover to 4.9%. The annual company turnover increase by 9.6% because of the annual supplement in the services, and productive workforce with 10%. The diversity of logistical factors and their impact have indicated a deficiency of that method in management. Finally, it is necessary for the company to think about an adaptive management to the west, and the western south areas, and their features. In this way, it gets the ability to enhance the
productivity, the cost-effectiveness of production, and services, as a result, its annual turnover rises up.

Key words: Logistical variants of NAFTAL satiations; The technical inefficiency; Frontier Production Functions; Stochastic Frontier Analysis; Maximum Likelihood method of estimation.