The measurement of stores efficiency in a retail chain using fuzzy data envelopment analysis

Aziz Kemal Konyalıoğlu*, Sibel Çayır, Nehir Yiğit, Tuncay Özcan

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

Abstract

The efficiency analysis of retail stores is critical to identify possible areas of improvement. At this point, data envelopment analysis (DEA) is widely used for efficiency measurement of service and production units. On the other hand, the values of input and output variables must be deterministic and precise in the conventional DEA models such as CCR and BCR. However, the input and output values are usually imprecise for real world problems. In order to overcome this shortcoming, fuzzy data envelopment analysis models have been developed. This study aims to use the fuzzy data envelopment analysis for measuring and ranking the efficiency of stores in a grocery retailer in Turkey. In this study, total floor area, average inventory at cost, total number of customers that visited the store and average number of employees in the store are considered as the input variables while GMROI (gross margin return on investment), net sales, inventory turnover and stock-out rate are considered as output variables in the fuzzy DEA. The proposed model is solved by using LINGO 17.0 optimization software. According to the model results, the inefficient stores are ranked and compared using a minimax regret approach.

Original languageEnglish
Title of host publicationIndustrial Engineering in the Industry 4.0 Era
Subtitle of host publicationSelected Papers from ISPR2023, October 5–7, 2023, Antalya
EditorsNuman M. Durakbasa, M. Güneş Gençyılmaz
Place of PublicationCham
PublisherSpringer
Pages85-94
Number of pages10
ISBN (Electronic)9783031539916
ISBN (Print)9783031539909
DOIs
Publication statusPublished - 2 Mar 2024
Externally publishedYes
Event23rd International Symposium for Production Research - Antalya, Turkey
Duration: 5 Oct 20237 Oct 2023

Publication series

NameLecture Notes in Mechanical Engineering
PublisherSpringer
ISSN (Print)2195-4356
ISSN (Electronic)2195-4364

Conference

Conference23rd International Symposium for Production Research
Abbreviated titleISPR 2023
Country/TerritoryTurkey
CityAntalya
Period5/10/237/10/23

Keywords

  • data envelopment analysis
  • efficiency measurement
  • fuzzy sets
  • retailing

Fingerprint

Dive into the research topics of 'The measurement of stores efficiency in a retail chain using fuzzy data envelopment analysis'. Together they form a unique fingerprint.

Cite this