What makes a difference? An evaluation and identification approach to distribution center productivity using DEA

Abstract

This research proposes an evaluation and identification approach illustrated in the context of 108 Distribution Centers (DCs) of a big soft drink company. We measure DC productivity, find the relationship between different impact variables, evaluate and identify what are the most influence variables using Data Envelopment Analysis (DEA) methodology with over 2 years' weekly data. The results showed high productivity cannot usually guarantee good revenue performance, if distribution center want to promote their productivity, they can reduce their forecast error, improve the fill rate but all hardworking may not be able to boost sales. © 2013 Asian Network for Scientific Information.