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Article

DISTRIBUTION CHANNELS SELECTION USING PCA-DEA APPROACH

DOI: 10.7708/ijtte.2015.5(1).09


5 / 1 / 74-81 Pages

Author(s)

Milan Andrejić - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000, Belgrade, Serbia -

Milorad Kilibarda - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000, Belgrade, Serbia -


Abstract

Strategic decision making is very important in logistics. One of the most important strategic decisions in logistics is the selection of distribution channels. This paper proposes the efficiency of distribution channels as one of the main selection criteria. The efficiency of distribution channels simultaneously affects logistics costs and customer satisfaction. Based on the main characteristics of the distribution channels, such as delivery time, service level, volume of business, the level of errors and the different cost categories in this paper the PCA-DEA approach for measuring the efficiency and selection of certain types of distribution channels is proposed. Model is tested on the numerical example. Results show the great capability of the proposed model.


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Acknowledgements:

This paper was supported by the Ministry of Education, Science and Technological Development of the Republic of Serbia, through the project TR 36006, for the period 2011-2014.


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