Evaluating the efficiency of a transport company applying an objective-subjective model

Abstract

ABSTRACT The main goal of every company is to gain as much profit as possible, and a very important goal is also to obtain a competitive advantage in the market. In this paper, it has been developed and applied an integrated model, which is based on a PCA-DEA-MCDM approach, with the aim of evaluating the efficiency of a transport company from Bosnia and Herzegovina. At the very beginning, using the PCA (Principal Component Analysis)–DEA (Data Envelopment Analysis) model, efficient and inefficient business years were identified, and then, using CRITIC (Criteria Importance Through Inter Criteria Correlation) and the Entropy method, weight values of defined parameters were determined. After that, the decision-making units were ranked using MARCOS (Measurement Alternatives and Ranking according to the Compromise Solution). In addition, the sensitivity analysis includes the formation of scenarios of changes in weight values of five most significant criteria and the calculation of SCC and WS correlation coefficients. The application of this integrated model, in addition to identifying efficient/inefficient years of operation, enables the identification of influencing factors of the most efficient year of operation, which can serve as a benchmark to further contribute to the efficiency of the transport company.