Template-Type: ReDIF-Paper 1.0
Author-Name: Balk, B.M.
Author-Name-Last: Balk
Author-Name-First: Bert
Author-Name: de Koster, M.B.M.
Author-Name-Last: de Koster
Author-Name-First: René
Author-Name: Kaps, C.
Author-Name-Last: Kaps
Author-Name-First: Christian
Author-Name: Zofío, J.L.
Author-Name-Last: Zofío
Author-Name-First: José
Title: An Evaluation of Cross-Efficiency Methods, Applied to Measuring Warehouse Performance
Abstract: In this paper method and practice of cross-efficiency calculation is discussed. The main methods proposed in the literature are tested not on a set of artificial data but on a realistic sample of input-output data of European ware- houses. The empirical results show the limited role which increasing automation investment and larger warehouse size have in increasing productive performance. The reason is the existence of decreasing returns to scale in the industry, resulting in sub-optimal scales and inefficiencies, regardless of the operational performance of the facilities. From the methodological perspective, and based on a multidimensional metric which considers the capability of the various methods to rank warehouses, their ease of implementation, and their robustness to sensitivity analyses, we conclude to the superiority of the classic Sexton et al. (1986) method over recently proposed, more sophisticated methods.
Length: 42
Creation-Date: 2017-12-06
File-URL: https://repub.eur.nl/pub/103185/ERS-2017-015-LIS.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2017-015-LIS
Classification-JEL: C43, C61, D22, D24, L81, L87
Keywords: Cross-efficiency methods, warehouse efficiency, automation investment
Handle: RePEc:ems:eureri:103185