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Efficiency measurement of grocery retail warehouses with DEA
Citation Link: https://doi.org/10.15480/882.4008
Publikationstyp
Conference Paper
Date Issued
2021-12-01
Sprache
English
Author(s)
Herausgeber*innen
TORE-DOI
First published in
Number in series
32
Start Page
317
End Page
348
Citation
Hamburg International Conference of Logistics (HICL) 32: 317-348 (2021)
Contribution to Conference
Publisher
epubli
Peer Reviewed
true
Purpose: To enable reliable food supply and to remain competitive, grocery retailers need to operate efficient distribution networks. Therefore, the purpose of this paper is to develop and apply a multi-criteria evaluation framework considering the complexity of grocery retail warehouses while maintaining the highest possible efficiency.
Methodology: We propose data envelopment analysis (DEA) as a non-parametric method of efficiency measurement and use an empirical seven-year dataset of 12 grocery retail warehouses. Four inputs and six outputs are included. We examine the efficiency development with DEA window analysis for longitudinal efficiency evaluation. By adding super efficiency, the model gains discriminatory power for efficient warehouses. We provide concrete improvement targets for all non-efficient warehouses through slack-based measurement.
Findings: As a method for multi-criteria efficiency evaluation, DEA models provide interesting results for efficiency measurement in food supply chains. Through the non-parametric multi-criteria approach, it enables an objective and holistic analysis perspective. By choosing inputs and outputs independently of their measurement unit, flexible application possibilities appear, giving non-monetary elements the necessary importance in optimization.
Originality: Although there are several studies dealing with the efficiency measurement of warehouses using DEA, our approach is the first to explore its application in food retail warehouse logistics over several periods.
Methodology: We propose data envelopment analysis (DEA) as a non-parametric method of efficiency measurement and use an empirical seven-year dataset of 12 grocery retail warehouses. Four inputs and six outputs are included. We examine the efficiency development with DEA window analysis for longitudinal efficiency evaluation. By adding super efficiency, the model gains discriminatory power for efficient warehouses. We provide concrete improvement targets for all non-efficient warehouses through slack-based measurement.
Findings: As a method for multi-criteria efficiency evaluation, DEA models provide interesting results for efficiency measurement in food supply chains. Through the non-parametric multi-criteria approach, it enables an objective and holistic analysis perspective. By choosing inputs and outputs independently of their measurement unit, flexible application possibilities appear, giving non-monetary elements the necessary importance in optimization.
Originality: Although there are several studies dealing with the efficiency measurement of warehouses using DEA, our approach is the first to explore its application in food retail warehouse logistics over several periods.
Subjects
HICL and Practice
Excellence in Logistics and Supply Chain Management
DDC Class
330: Wirtschaft
Publication version
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Gafner et al. (2021) - Efficiency measurement of grocery retail warehouses with DEA.pdf
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