Study on logistics operation cost control based on the DEA model

Abstract

To solve the problem that the logistics operation cost can't be controlled well by traditional methods, a DEA (data envelopment analysis) model is presented. The mechanism of the model is to make the logistics activities as a decision making unit to evaluate the efficiency of input and output. Base on the DEA result, the efficient logistics activities are reserved, and the inefficient ones are improved by explicit methods and goals. The key procedures of DEA model include establishing a standard logistics activity database, decomposing logistics activities and determining that the logistics is the efficient decision unit. The paper is of great significance to improve operation efficiency of logistics network.