Recently, observing outcome of business is becoming an important issue in order for a company to be survived and flourished in rapidly changing environment. It is necessary to evaluate productivity and efficiency which is defined as ratio of the input and output so as to improve business performance.
This study identified an inefficient logistics company, and evaluated the level of business performance of logistics company by using DEA (Data Envelopment Analysis).
DEA has been used to measure the performance of organizations such as banks, insurance companies, universities and hospitals. Recently DEA has been widely used to evaluate efficiency in the port industry. This paper implements DEA by using labor cost, lent cost, and management expense as inputs and container throughput, sales, and profit as outputs for 70 logistics companies in Korea.
According to the results of CCR input-orientation and output-orientation model based on input and output data in 2013, it was found that the efficiency value of 11 logistics companies out of 70 logistics companies were over 1.00.
However the result of BCC input-orientation and output-orientation model showed that 14 logistics companies' efficiency value were over 1.00.
In this study, the analysis of the input orientation and output orientation of DEA method for each of the assumed constant returns to scale in DEA-CCR model and the size of the variable remuneration for the DEA-BCC model in the form of two models of a total of four kinds analyzed.
In the case of CCR, input orientation and output orientation model, each value represents the same efficiency of the model and it was found that the efficiency value of 8 companies out of 70 companies were over 1.00.
In the case of BCC input orientation and output orientation model, each slightly different values but showed that 14 companies' efficiency value were over 1.00.