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An analysis of operations efficiency in large‐scale distribution systems
Author(s) -
Ross Anthony D.,
Droge Cornelia
Publication year - 2004
Publication title -
journal of operations management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.649
H-Index - 191
eISSN - 1873-1317
pISSN - 0272-6963
DOI - 10.1016/j.jom.2003.11.003
Subject(s) - data envelopment analysis , computer science , scale (ratio) , set (abstract data type) , resource allocation , resource (disambiguation) , selection (genetic algorithm) , operations research , supply chain , supply chain management , resource distribution , distribution (mathematics) , environmental economics , operations management , business , economics , statistics , marketing , mathematics , computer network , physics , mathematical analysis , quantum mechanics , artificial intelligence , programming language
This research applies Data Envelopment Analysis (DEA) methodology to evaluate the efficiency of units within a large‐scale network of petroleum distribution facilities in the USA. Multiple inputs and outputs are incorporated into a broad set of DEA models, yielding a comprehensive approach to evaluating supply chain efficiency. This study empirically separates three recognized, important and yet different causes of performance shortfalls which have been generally difficult for managers to identify. They are: (1) managerial effectiveness; (2) scale of operations and potential for a given market area (and efficiency of resource allocation given the scale); and (3) understanding the resource heterogeneity via programmatic differences in efficiency. Overall, the efficiency differences identified raised insightful questions regarding top management’s selection of the appropriate form and type of inputs and outputs, as well as questions regarding the DEA model form selected.