LPI Based Two Stage Network DEA Model to Measure Logistics Efficiency: An Application on OECD Countries
Anahtar Kelimeler:Logistics- Efficiency- Network DEA
Purpose – Measuring logistics efficiency is important to understand the strengths and weaknesses of a country’s logistics operations and to be able to do necessary improvements. A common practice in the literature is applying Data Envelopment Analysis (DEA) with World Bank’s logistics performance index (LPI) values for measuring logistics efficiency of countries. While DEA is a powerful methodology for relative efficiency measurement, a more sophisticated branch of DEA models is Network DEA (NDEA), especially for processes with inner sub-processes. The purpose of this study is to present a novel NDEA model for measuring logistics efficiencies and sub-efficiencies of countries.
Design/methodology/approach – This study presents a relational two-stage network data envelopment analysis model to measure relative efficiency of a country’s logistics process. For the first time in literature, total logistics process of a country is divided into two sub-processes as production and service stages.
Findings – Proposed Network DEA model utilizes international LPI scores and macroeconomic indicators to measure OECD countries’ logistics efficiencies for bi-yearly periods between 2010 and 2018. Obtained results favors 3 countries out of 37 with high logistics efficiencies. Also, by grouping the countries in terms of development level, results show that although developed countries have better logistics outputs in terms of LPI index, most logistically efficient countries are developing economies in general.
Discussion – This study with proposed NDEA model is open for further research and development. The model could be varied with different capital and labor measures, also could be improved by adding some domestic LPI or other logistics indicators.
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