Estimation of the manufacturing industry sub-sectors’ capacity utilization rates using support vector machines

Abstract

Capacity utilization rate is one of the most important indicators of the efficiency of the manufacturing industry, and therefore of the return of the investments made. Estimation of these rates accurately renders it possible to make important economic decisions such as taking sectorial investment decisions, defining the optimal distribution of sectorial credits, determining noncompetitive sectors, making development plans and developing unemployment policies. In this study, we estimated the capacity utilization rates of 21 sub-sectors of the Turkish manufacturing industry using support vector machines and compared the results with the results obtained from the methods of artificial neural networks and vector auto-regression. This study is the first in the literature in that it was carried out using this method.

Capacity utilization in industrial sector: a structured review and implications for future research

“…These challenges degrade the confidence of top management and employees of the organization; results in fear factor overlap such formation. The authors have summarized the list of critical challenges as follows: Non-availability of the standard framework (Jha et al , 2018) Lack of awareness about capacity and CU (Bhatia and Kaur, 2016) Lack of an effective training program (Bhatia and Kaur, 2016) Insufficient top management involvement (Chen et al , 2020) Poor employee cooperation (Song et al , 2018) Original data deficiency (Erdal et al , 2013) …”

“…Non-availability of the standard framework (Jha et al, 2018) Lack of awareness about capacity and CU (Bhatia and Kaur, 2016) Lack of an effective training program (Bhatia and Kaur, 2016) Insufficient top management involvement (Chen et al, 2020) Poor employee cooperation (Song et al, 2018) Original data deficiency (Erdal et al, 2013) To mitigate the actual goal and full CU of the plant, it is requisite to overcome the said challenges. Primarily, top management needs to be addressed about the tangible benefits of full CU of plant and need real involvement in solving the capacity problem.…”