Performance Evaluation Of Regional Reverse Logistics Network Operate Based On DEA

With the development of social economy, product’s life cycles are getting shorter and shorter.The demand of waste recycling are increasingly high, and the developed countries have alreadyaccumulated rich experience of reverse logistics. But China’s reverse logistics network is stillimmature, and the developments between regions are unbalanced. In this article the author applydata envelopment analysis (DEA) to evaluate the performance of each province’s reverse logisticsoperation, and analyze the reason why some provinces have high efficiency. In addition, the authorgives improvements to six inefficient provinces. At last, combined with successful experienceabroad and the improvements given by DEA, this paper gives three suggestions on establishingChina’s reverse logistics networks.In this article the author do the works as follows:1. Established the index system of regional reverse logistics performance evaluationRefer to existing literature and statistical data, this paper choose two input index——numberof employees of recovery and processing industry of scrap resources and waste materials,above-scale enterprises’ main business costs of recovery and processing industry of scrap resourcesand waste materials; three output index——each province’s total population，number of above-scaleenterprise in recovery and processing industry of scrap resources and waste materials, above-scaleenterprises’ output value of recovery and processing industry of scrap resources and wastematerials.2. Established the evaluation model of regional reverse logistics network performance evaluationThrough research of existing methods of performance evaluation, the author suggests applyDEA to evaluate the performance of each province’s reverse logistics operation. DEA overcome theweak point of subjective factors in existing performance evaluation’s methods and the possibledeviation in the standardization process of different dimensions. It can calculate the relativeeffectiveness of different decision-making units (DMU) directly and quickly. This paper apply CCRand BCC model of DEA to establish the evaluation model of regional reverse logistics networkperformance which can measure pure technical efficiency and scale efficiency of regional reverselogistics network and provide a reference views for the reverse logistics network construction3. Evaluated the performance of the reverse logistics network in various provincesThis paper applies the data of every province in2010to DEAP2.1software, and divides all theprovinces into three types according to the results: efficient, technical efficient and scale inefficient,inefficient, and analyze the improvements of six inefficient provinces individually. At last, combined with successful experience abroad and the improvements given by DEA, this paper givesthree suggestions on establishing China’s reverse logistics networks: controlling costs to strengthenthe large-scale operation; establishing a complete market system of reverse logistics to ensure thevirtuous cycle of recycling industry; using a variety of safeguards to motivate the development ofreverse logistics.