DEA Model for Logistics Cost Evaluation Based on Activity Analysis

To solve the problem that activity-based management (ABM) method is difficult in quantitative logistics cost evaluation, a data envelopment analysis (DEA) model for logistics cost evaluation based on activity analysis is developed in this paper. The practice of logistics ABM is scarce in China, as a result, itpsilas difficult to acquire activities costs data of other enterprises. So, time intervals of logistics activities are considered as decision-making units (DMUs) in the DEA model. DMUspsila efficiencies and optimal virtual DMUs are determined by solution of DEA model developed in this paper. In this paper, numerical examples are also given to illustrate the application of the above model. The results show that the above evaluation method is objective and accurate, and not only the efficiency of logistics activity can be evaluated, but also optimal structure of logistics activity cost can be obtained. Therefore, this method gives the improved route of logistics activity, and is very practical.