Efficiency of Logistic Industry of Hunan based on DEA

Abstract

The logistics industry is a new economic growth point to promote regional economic development. This paper analyzes the logistical efficiency of eight areas in Hunan province from 2005 to 2014 using the BCC model and CCR in DEA analysis. The results show that both the PTE and SE of the logistics industry are low. We should enhance the logistic technology and decrease the logistic scale to improve the efficiency of Logistic Industry of Hunan. Introduction With the economic fast development and the process of globalization, logistics industry as an emerging industry has become an important part of the modern economy and an important growth point and accelerator of China's economic development. In the promotion of regional resources optimal allocation, improve the investment environment and increase the competitive advantage of industry, regulating the equilibrium of supply and demand of the market, promote the quality of economic operation and enhance the comprehensive strength of area, the logistics industry plays an important role. Therefore, the efficiency of logistics industry is not only related to the development of the logistics industry, but also to a large extent determines the speed of regional economic development. The so-called logistics industry efficiency refers to the effective use of the logistics resources, is the logistics industry market competition ability, input output capacity and sustainable development capacity of the general term. The research from different aspects of the logistics industry efficiency evaluation of the problem, but specifically for the logistics industry in Hunan Province, the development efficiency of the research is not seen in the domestic literature. The DEA analysis method, through the research on the logistics industry in Hunan Province efficiency and its influencing factors, explore the logistics industry to enhance the path and strategy of development, both to provide theoretical support and data support for the formulation of the relevant management departments in Hunan Province logistics industry development strategy. At the same time, it can provide a reference for the similar areas of logistics industry development. Principles and Models of DEA Principles of DEA This paper uses DEA (Envelopment Analysis Data) to study the efficiency of Hunan logistics industry. DEA is founded by Charles A, Cooper WW and Rhodes in 1978. The method is mainly used for evaluation of a plurality of the same type with the relative efficiency of multiple inputs and multiple output decision making DMU (Decision Making Units). Based on the input and output data of DEA, the relative efficiency of each decision unit is calculated by using linear programming. If the efficiency value is 1, the decision unit DEA is effective, if the efficiency value is between 0 and 1, the DEA is invalid. The efficiency value is close to 0, the higher the degree of invalid. For the non-effective unit, we can use the projection analysis to get the specific adjustment quantity, and provide the quantitative decision-making basis for the decision maker. DEA avoids the subjectivity of the weight given by the human, and is based on the objective data. Through the linear programming, the efficiency value of the decision units is obtained. International Conference on Economy, Management and Education Technology (ICEMET 2015) © 2015. The authors Published by Atlantis Press 114 CCR Model The most basic model of DEA is the CCR model. It is assumed that the scale of remuneration is fixed, so as to calculate the relative comprehensive technical efficiency. If there are n decision making units, m input variables for each decision unit, and p output variables. 1 2 ( , , , ) 1, 2, T j j j mj X x x x j n = =   and 1 2 ( , , , ) 1, 2, T j j j mj Y y y y j n = =   are input variables and output variables for decision making unit DMU. CCR model is described as follows: