Efficiency And The Returns To Scale Research Of Logistics Enterprises

With the development of economic globalization and the increasing progress of science and technology, China and other countries are getting closer and closer in economic, which brings opportunities and challenges for China especially for the logistics industry. Foreign companies entering the Chinese market are eager to be able to have a low-cost, efficient logistics as a service guarantee, which brings Chinese logistics industry opportunities. Meanwhile foreign logistics enterprises entering the Chinese market bring great challenges for Chinese logistics enterprises. Faced with such big challenges, the Chinese logistic industry can develop healthily and orderly, which become an urgent problem. Evaluating efficiency and analyzing returns to scale to enterprise are helpful to find problems of its own and to adjust the direction of the investors, which ensure the healthy development of the enterprise. However, there are many problems in the existing studies, for example, imperfect index system and unscientific evaluation methods. Based on this, this paper studies logistics company’s efficiency and returns to scale. The paper mainly includes the following content:firstly this paper puts forward a comprehensive evaluation index system which includes the index of logistics business operation process, the index of information level and the index development potential. Based on this index system, this paper puts forward two methods of efficiency evaluation. Based on the study of the existing literatures on the performance evaluation of logistics enterprises, we present the cross-efficiency DEA and entropy IAHP method. Super-efficiency DEA is used to choose the weights of the efficiency value only when the weighs are in the most advantageous position to a decision making unit, which neglects the fairness. IAHP method has the drawback of larger subjective judgments while evaluating performance. The central idea of the cross-efficiency DEA theory is adopted from the peer assessment system. Ignoring the fairness, the super-efficiency DEA method just chooses weights which are favorable for a decision making unit. This drawback can be compensated by cross-efficiency DEA method. Entropy IAHP method is the combination of the entropy method determining weights justly and the IAHP method reflecting the decision makers’preference. Further study on the cross efficiency DEA-Entropy IAHP method, a method integrating game cross efficiency DEA and Entropy FAHP to evaluate the logistics performance is proposed in this paper. The game cross efficiency DEA could rank all the DMU in the competitive environment which can’t be done in cross efficiency DEA, while FAHP could better express the decision maker’s preference considering the fuzziness people thinking. A case is computed to illustrate the applicability and feasibility of the two methods. In addition to there are rarely papers analyzing returns to scale of the logistics enterprises. There are some scholars using the existing methods to analyze the returns to scale of the logistics enterprises. However, the existing methods are based on the technology effectively. Complex supporting hyperplane is needed to construct. To overcome these limitations, firstly, the definition of technical efficiency and scale efficiency are given in paper. And then from the reverse idea of different technical efficiency between CRS model and VRS model, this paper presents a simple method of analyzing returns to scale for any DMU, by comparing technical efficiencies based on model. A case is computed to illustrate the applicability and feasibility of the method. Finally, this model applying to analyze returns to scale of logistics enterprises is studied, and a case is computed to illustrate the applicability and feasibility of the model.