An analysis of operations efficiency in large‐scale distribution systems

Abstract

This research applies Data Envelopment Analysis (DEA) methodology to evaluate the efficiency of units within a large-scale network of petroleum distribution facilities in the USA. Multiple inputs and outputs are incorporated into a broad set of DEA models, yielding a comprehensive approach to evaluating supply chain efficiency. This study empirically separates three recognized, important and yet different causes of performance shortfalls which have been generally difficult for managers to identify. They are: (1) managerial effectiveness; (2) scale of operations and potential for a given market area (and efficiency of resource allocation given the scale); and (3) understanding the resource heterogeneity via programmatic differences in efficiency. Overall, the efficiency differences identified raised insightful questions regarding top management's selection of the appropriate form and type of inputs and outputs, as well as questions regarding the DEA model form selected.

Efficiency analysis of European Freight Villages: three peers for benchmarking

“…Essentially, the inputs are various resources consumed by DMUs for operation, while the outputs represent a set of quantitative measures of results expected from operation (George and Rangaraj 2008). In general, resource input can include any combination of labour, equipment, capital and/or information; outputs can be categorized as aggregate revenue, profits, quality, utilization and customer satisfaction (Ross and Droge 2004).…”

Determinantes da eficiência de escala no setor brasileiro de operadores logísticos

“…Em outras palavras, a eficiência de escala pode ser empregada para determinar o quão próximo cada um dos OLs da amostra está de seu correspondente tamanho de escala mais produtivo, e quanto isso é reflexo de seus processos de coordenação na cadeia de suprimentos: gestão dos fluxos de informações, controle de estoques e dimensionamento de recursos . Em sistemas de distribuição de larga escala (situação que é característica dos OLs), diferentes processos de coordenação frequentemente levam a diferentes padrões de alocação de recursos por entre atividades, podendo tornar mais flexível a adequação da escala à operação (ROSS;DROGE, 2004). Nesse caso, os resultados da eficiência de escala podem indicar oportunidades para downsizing (retornos decrescentes de escala) ou consolidação de operações (retornos crescentes de escala).…”

Applying the Service-Profit Chain to Internet Service Businesses

“…In particular, DEA is a tool for evaluating marketing's credibility [13], retail productivity [17,18], sales force performance [19,20], and advertising efficiency [11,12,14]. Also, DEA is used to compute efficiency of supply chain processes [21,22] and operations efficiency [23].…”