Evaluating retail efficiency using DEA and AHP: a case in the Turkish apparel retail industry

Abstract

PurposeThe purpose of this study is to propose a comprehensive efficiency evaluation approach to measure the efficiency of the retailers and to determine the relative importance of a wide variety of apparel retail-specific factors that support efficiency.Design/methodology/approachThe first stage of the proposed approach is the measurement of the relative efficiency of the apparel retailers by using data envelopment analysis (DEA) for identifying the best practice frontier and determination of the improvement ratios. The second stage is the prioritization of the factors that are important in the apparel retail efficiency using analytical hierarchy process (AHP).FindingsThe findings of the study revealed that the quantitative criteria to be considered for efficiency through input minimization and output maximization were “number of employees” and “profit before tax,” respectively, however, focusing on output maximization was found to be more critical. In addition, it was seen that the most important qualitative components of efficiency were satisfied customers, qualified staff and branding.Practical implicationsThe managerial actors in the apparel retail industry can be alerted for new strategic actions to adopt best practices or take precautions for future inefficiencies with the help of the results obtained. The customized hierarchical structure allows determining the priority areas that need to be focused on for increasing the performance of apparel retailers.Originality/valueIn this study, DEA and AHP were combined to build a comprehensive efficiency evaluation approach in the apparel retail industry for the first time in the literature. Thus, both qualitative and quantitative variables that are important in apparel retail efficiency were put forward and evaluated. The originality of the hierarchical structure in AHP was its customization to the apparel retail industry.

The operational performance of fashion companies in the context of the coronavirus pandemic: static and dynamic analyses

“…Thus, optimizing labor resources is a primary task in the fashion industry. In fact, this finding is consistent with the results of Okur and Ercan (2022). However, their study mainly focused on the situation before the pandemic.…”

“…Upon observing these related studies, it was found that two critical aspects affect operational performance: cost and assets. Additionally, Okur and Ercan (2022) measured fashion retailers' performance and found that the labor force is another crucial factor for fashion companies. Based on these results, key indicators were identified in this research.…”

Application of fuzzy group decision-making Selecting Green Supplier: A case study of the manufacture of natural laurel soap

“…Focused area Core DM Techniques [25] Manufacturing industry AHP [26] pharmaceutical industry AHP [27] wafer fabricating industry AHP & ANP [28] postal industry AHP [29] airline industry AHP [30] textile industry AHP [31] clothing industry AHP [32] mining industry AHP & DEA [33] Mobile Phone Industry TOPSIS & AHP [34] airline industry AHP [35] tourism industry AHP [36] textile industries TOPSIS & AHP [37] real-estate industry AHP [38] Tourism Industry AHP [39] retail industry DEA & AHP [40] Banking Industry DEA [41] computer industry DEA [42] auto component industry DEA [43] insurance industry DEA [44] banking industry DEA & TOPSIS [45] ICT industry DEA & AHP [46] petrochemical industry DEA [47] banking industry DEA [48] hotel industry DEA & AHP [49] hotel industry DEA [50] airline industry DEA [51] construction industry DEA [52] petroleum industry ANP & TOPSIS [53] Hospitality Industry ANP [54] maritime industry ANP [55] manufacturing industry ANP [56] Brazilian Industry ANP & AHP Some scholars have focused on the industrial sectori, according to Table 1. However, most previous studies relied on one technique and supported the results with sensitivity analysis or relied on the integration of two techniques to reach the required results.…”

Measuring the performance of retailers during the COVID-19 pandemic: Embedding optimal control theory principles in a dynamic data envelopment analysis approach

“…The DEA approaches kept been widely used for measuring physical and operational aspects of retailing performance until nowadays, for example, integration between fuzzy Delphi and DEA for measuring the performance of retail electronic chains [32] , basic DEA models for measuring the performance of small supermarkets [33] , and a basic DEA model for measuring the performance of apparel retailers [34] . Similarly, a paper used lean theory to choose the variables to measure a supermarket's performance with a DEA model [35] .…”