Title: Performance evaluation of logistics firms based on DEA model

Authors: Hong Hong; Di Xu

Addresses: School of Management, Xiamen University, 422 South Siming Road, Xiamen, Fujian, China ' School of Management, Xiamen University, 422 South Siming Road, Xiamen, Fujian, China

Abstract: Logistics plays an increasingly more important role in the whole national economy. However, China's logistics industry is still in its infancy, and its operation efficiency desperately needs to improve. This paper applies data envelopment analysis (DEA) to evaluate the operation efficiency of two categories, and a total number of 20 representative listed logistics firms in China. DEA CCR, BCC and cross-efficiency model are used to discover the level and reasons of efficiency and inefficiency of sample decision-making units (DMUs). Net permanent assets, total assets, number of employees and main business costs are selected as input measures; net profit, capital turnover rate and main business income are used as output measures. The results show that about half of sample logistics firms are efficient DMUs, indicating the overall developing situation of logistics industry in China is good; the efficiency of logistics firms is related to regional economy. Related suggestions for efficiency improvement of Chinese logistics industry are also presented.

Keywords: logistics performance evaluation; data envelopment analysis; DEA; decision making units; DMUs; cross-efficiency model; modelling; China; operational efficiency; net permanent assets; total assets; number of employees; main business costs; net profit; capital turnover rate; business income; logistics industry.

DOI: 10.1504/IJSTM.2015.073920

International Journal of Services Technology and Management, 2015 Vol.21 No.4/5/6, pp.199 - 213

Received: 27 Nov 2014
Accepted: 03 Feb 2015

Published online: 29 Dec 2015 *

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