A model for distribution systems performance evaluation

Abstract

In today's business environment, as the competitiveness becomes increasingly fierce, improving the business performance becomes more important. A major factor affecting business operations is distribution systems performance control. In a distribution network, if an independent point well manages its performance, the efficiency of the entire enterprise will improve. In order to do this, it is essential to evaluate the effectiveness of each distribution point. However, at present, this evaluation is usually based on experience or only a few indicators such as revenue or profit. The effectiveness of a distribution point should be simultaneously considered for sales with resources used such as costs, manpower or business market characteristics such as the number of similar stores within 4 kilometers radius... Therefore, DEA (Data Envelopment Analysis) method is proposed and used to evaluate the performance of independent distribution points and analyze the factors that affect efficiency by the Tobit regression model. This model was tested for a food distribution system in Ho Chi Minh City to prove its feasibility and usefulness.