The transport performance evaluation system building of logistics enterprises

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1 Jounal of Industial Engineeing and Management JIEM, 213 6(4): Online ISSN: Pint ISSN: The tanspot pefomance evaluation system building of logistics entepises Xueli Wang 1, Yu Chen 2, Li Zhang 3 1,2 Shijiazhuang Institute of Railway Technology (China) 3 National Libay of China (China) Received: Mach 213 Accepted: May Abstact: Pupose: The moden logistics has a significant ole in today s society, logistics cost accounts fo 35% to 5% of the total logistics costs, so it has geat significance to impove the tanspot pefomance of logistics entepises. Design/methodology/appoach: The authos selected the tanspotation pefomance evaluation index of logistics entepise, with the aid of the fuzzy theoy and analytic hieachy pocess (AHP), adopted the combining method of quantitative and qualitative analysis, constucted the tanspot pefomance evaluation system of logistics entepises. Findings: Though the model analysis, we know that the choice of logistics entepises tanspotation pefomance evaluation index system is in the condition of elatively high, which has cetain guiding significance to impove tanspot efficiency and educe tanspotation cost fo the logistics entepise. Reseach limitations/implications: It has geat significance to impove the tanspot pefomance of the logistics entepises. But because of the expets subjective factos, the selected indicatos of the text can not accuately quantify. Pactical implications: It has impotant pactical significance to pomote the development of moden logistics entepises and save the social cost

2 Jounal of Industial Engineeing and Management Oiginality/value: Cuent eseach methods of tanspot pefomance mainly include the PDCA cycle model, key pefomance indicatos (KPI), pincipal component analysis method and etc. The authos adopted the combining method of the fuzzy theoy and analytic hieachy pocess (AHP) eseach on tanspot pefomance poblems. Keywods: tanspotation pefomance, the fuzzy theoy, analytic hieachy pocess (AHP) 1. Intoduction Tanspotation occupies vey impotant position in the moden logistics industy, tanspot costs ae also impotant in the popotion of the whole logistics system, accoding to elevant statistics show that: tanspot costs account fo about 35% to 5% of the total logistics cost, and about 4% to 1% of commodity pices. Theefoe, it s vey impotant fo logistics entepises to save the tanspotation cost, and it s also vey significant fo the society as a whole logistics total cost saving. With logistics cost minimization goal, it is a big poblem fo us how to choose and evaluate logistics sevice povides scientifically and coectly. Tanspotation pefomance evaluation is impotant methods fo consideation the logistics sevice povides (Yuan & Meng, 213). Tanspotation pefomance evaluation efes to the pefomance evaluation of tanspotation activities o tanspotation pocess. It is geneally in accodance with the unifom evaluation citeia, adopting cetain index system, accoding to cetain pocedues, using qualitative and quantitative methods, making the compehensive judgment to a cetain peiod of time tanspot activity o pocess effectiveness and efficiency. Tanspotation pefomance evaluation is main steps fo the logistics entepises and othe elated entepises. With the help of tanspotation pefomance evaluation of logistics entepises can optimize the pocess, impove the economic benefit (Li, Wang & Han, 29). 2. The tanspot pefomance evaluation system building of logistics entepises Because vital ole of tanspotation in the moden logistics industy, in ecent yeas, the study of logistics tanspotation has inceasingly become one of hot eseach topic in egional development both at home and aboad, thee ae PDCA cycle model, key pefomance indicatos (KPI) and benchmaking method, pincipal component analysis method, etc (Wei, 26). With the aid of fuzzy theoy and AHP method, the authos constucted the pefomance evaluation of logistics entepise tanspot model, and applied this model to evaluate logistics entepise tanspot system, futhe pomoted the management wok of the logistics sevice povides to be standad and pocedue (Zhang, 27). Logistics entepise tanspotation evaluation concens many indicatos, and each index involves many elevant factos. In these factos, some can use quantity exact expession, some -195-

3 Jounal of Industial Engineeing and Management difficult to quantify the exact expession, only can qualitative expession. Thus the AHP method and fuzzy theoy can be combined, quantitative indexes and qualitative indexes will be togethe fo multi-gade fuzzy compehensive evaluation. AHP is a method using which qualitative poblem can be tanslated into a quantitative analysis, the basic idea is: fist, build hieachical analysis stuctue model, then though compaison between each two factos of each laye, compaative judgment matix is constucted. Judgment matix means accoding to the factos above itself, the factos of this level and elated factos compaed elative impotance. Judgment matix is the basic infomation of the AHP, is also an impotant basis fo the calculation of elative impotance. Eventually the qualitative analysis and compehensive evaluation wee attibuted to the weights of elative impotance of the lowe laye elative its uppe level. Using mathematical expession is eigenvalue and eigenvecto poblem (Nie, Zhang & Yang, 25) Establish effect evaluation sets v Evaluation sets is that evaluatos make the set of qualitative desciption accoding to evaluation objects. In the aticle, The tanspot pefomance evaluation of logistics entepise is divided into 5 levels, The coesponding evaluation set V = {v 1, v 2, v 3, v 4, v 5} = { absolutely high, vey high, highe, slightly high, geneally high} Establish effect evaluation index collection U The pefomance evaluation of logistics tanspot entepise set about sevice quality, sevice cost, maket capacity, infomation capacity fou aspects. Detailed is in the following table. U The fist level index U i The second level index U ij Tanspot pefomance evaluation index system of logistics entepise Sevice quality pefomance indicatos U 1 Sevice cost pefomance indicatos U 2 Maket ability pefomance indicatos U 3 Infomation ability pefomance indicatos U 4 U 11:coect ode pocessing ate U 12: on time delivey ate U 13: communicate ability U 14: custome satisfaction U 15:ode tacking ability U 16:flexible delivey U 17:cago damage ate U 21: logistics cost contol level U 22:pe unit poduct sevice cost U 23: system cost U 31: maket shae U 32: the maket gowth ate U 33: the maket stain capacity U 41: logistics management infomationization level U 42: infomation tansmission efficiency levels U 43: infastuctue level Table 1. Tanspot pefomance evaluation index system of logistics entepise -196-

4 Jounal of Industial Engineeing and Management Sevice quality Tanspotation secuity, timeliness, convenience, accuacy and timeliness ae impotant aspects of sevice level evaluation seveal. We peliminaily detemine the seven indicatos to measue the sevice quality (Guan, 211) Sevice cost Sevice cost of pe unit poduct: this indicato can be used to evaluate the efficiency of tanspotation opeations and the level of compehensive management, geneally with the atio of the total feight amount and in the same peiod quantity of the goods. Tanspotation costs mainly include all kinds of fuel, pats, oad tolls, woke wages, epai, depeciation and othe costs. System cost: as well as vaious types of tanspotation cost, we also need to conside elated costs of the system, such as stoage costs, such as some staight to send cost is vey high, but not necessaily moe than the costs at a local inventoy. Logistics cost contol level: logistics cost contol is a cental pat of the logistics cost management, the contol ability to diectly detemine high and low of logistics cost, which diectly affects the economic benefits of entepises Maket ability The maket ability mainly includes the maket shae and maket gowth ate, the maket stain capacity, etc (Chen, Cheng & Chen, 27) Infomation ability Infomation ability is the impotant guaantee of sustainable development fo tanspotation in logistics entepises: Infastuctue level belongs to the had technology, mainly includes the tanspotation hub, logistics paks, logistics technology and equipment, such as the moden thee-dimensional automated waehouse facilities investment and use. Logistics management infomationization level: logistics management infomation technology diectly decide the development of the logistics infomation, logistics infomation technology is the key to impove the level of logistics management. With the apid development of science and technology, the moden logistics infomation technology, such as vaious kinds of ba code technology, automatic identification technology, automatic soting technology, satellite positioning technology has become an impotant tool of logistics opeation and the main chaacteistics of logistics management infomationization development

5 Jounal of Industial Engineeing and Management Infomation tansmission efficiency: the smooth of infomation channels, the timeliness and accuacy of delivey is the key to guaantee infomation exchange. Logistics infomation tansmission inefficient lead to the lack of tanspaency of inventoy, loading and unloading, and tanspotation, causing the distibution and tanspotation costs incease (Qu & Wang, 212) Detemining the evaluation indexes weights A Each element of evaluation index collection U has diffeent impotance in the assessment, theefoe accoding to its impotant extent, each element must be confimed diffeent weight numbe. The weight set A which is composed by each weight numbe is the fuzzy subsets of evaluation index set U. On the basis of the hieachical stuctue model, AHP is used to calculate the weights. The basic pocedue is as follows: Accoding to the established hieachical stuctue model, in each laye by compaison between two elements, compaative judgment matix is constucted. Solving featues oot of judgment matix M, chaacteistic vecto is soting weights of elative weights of each facto in the same level elative some facto of its uppe laye. Then consistency test of the judge matix is poceeding, until it has satisfactoy consistency. Specific pocedue is as follows: Constuct judgment matix The constuction of judgment matix eflects that accoding to the uppe evaluation index X, the lowe index Y i and Y j constuct the elative impotant degee paiwise compaison matix L= (L ij) n n, L ij means aimed at the uppe evaluation index X, the impotant degee value of Y i compaed with Y j. Common scale types of constuct judgment matix have 1-9 scale and e/5 - e8/5 scale. Consideing the eseach question based on single citeion, this pape selects 1-9 scale Calculate weight A In theoy, the weight calculation poblem can be attibuted to the calculation of the biggest featue oot and the eigenvecto of judgment matix. Squae Root method, chaacteistic oot method, the least squaes method is widely used, among which Squae Root method is a simple and feasible method. The Squae Root method can be used in the condition of low accuacy equiement, so the pape chooses it Judgment matix consistency inspection The establishment of judgment matix, makes the judgment thinking mathematical, simplifies the analysis about question, but judgment matix can not always maintain the consistency of the citical thinking. Namely pesumption the impotance of the judge index, thee wee no consistent situation among the judgment. Theefoe, it is necessay fo judgment matix to -198-

6 Jounal of Industial Engineeing and Management cay out the consistency inspection. Random consistency atio index C.R. can be used to inspect the judgment matix consistency. C. I. C. R. = (1) R. I. λmax n C. I. = (2) n 1 In the fomulas, λ max is the biggest chaacteistic oot fo judgment matix; R.I. is the aveage andom consistency index, Values of R.I. can be seen fom table 2. Ode RI R.I. is the aveage andom consistency index. When C.R. <.1, it s consideed good consistency, the judgment matix can be accepted. Table 2. Values of R.I Constuct membeship function, establish fuzzy judgment matix R The ole of membeship function is that gain the index value then fuzzy them in the field of evaluation gades, make sue the level of each index. Membeship functions have vaious foms. We should choose them based on the chaacteistics of the ating index o statistics and by expet expeience. This pape selects membeship functions just as follows: ij = n C j= 1 j C j (3) In the above fomula, C j as evaluation indexes was appaised V j the numbe of expets. In index collection U, membeship degee of NO. i index U i elative to evaluation sets V NO. j element V j is ij, then we can gain the fuzzy judgment matix R R = n n2 1 m 2m nm (4) 2.5. Fuzzy compehensive evaluation Accoding to the AHP method and multi-level compehensive evaluation pocess is fom lowe of the hieachical stuctue model to the top. Though detemined a cetain level evaluation index weight A and fuzzy judgment matix R, we can obtain the fuzzy evaluation vecto B, namely B = A R = m ( a a,, a ) = ( b, b,, b ) 1, 2 n 1 2 m n1 12 n2 1m nm (5) -199-

7 Jounal of Industial Engineeing and Management In the above fomula, B j is fuzzy compehensive evaluation index, which means unde the compehensive consideation the all factos affecting cicumstance, fuzzy compehensive evaluation vecto B is fuzzy subsets of evaluation sets V Compehensive evaluation esult pocessing, detemine the ating Though evese fuzzed the evaluation esults b j, final evaluation esults can be gained. Revese fuzzed thee ae many methods, this pape selects the weighted aveage method. Accoding to the chaacteistics of the poblem, weighted vecto γ can be detemined which is coesponding evaluation sets level. Industy cluste goup competitiveness evaluation ae ated {absolute high, vey high, highe, slightly high, geneally high}, the coesponding weighted vecto can be set as γ = (.95,.85,.75,.65,.55). Combining the fuzzy compehensive evaluation vecto B, we can get the compehensive evaluation value Z. Z = γ B T (6) Compaing the compehensive evaluation value and the compehensive evaluation citeia in advance, we can detemine The tanspot pefomance evaluation of logistics entepise level. 3. The tanspot pefomance evaluation index system analysis of logistics entepise 3.1. Establish evaluation sets V and effect assessment index collection U Evaluation sets V and effect assessment index collection U ae just as mentioned above Detemining the evaluation indexes weights A Though the investigation and study, and ask fo many expets, accoding to 1-9 scale, the judgment matix of U 1 U 4 ae espectively detemined, the coesponding weight ae calculated, and the consistency inspection ae caied out. By calculating, we get the esults C.R. <.1 which show the consistency of the judgment matix is acceptable. Fo example, the judgment matix of U 1 (intenal opeation pefomance indicatos) just as table 3. U 1 U 11 U 12 U 13 U 14 U 15 U 16 U 17 U /8 1/7 1/6 1/2 1/3 3 U U / U /4 1/ U /6 1/5 1/3 1 1/4 2 U /5 1/4 1/ U 17 1/3 1/8 1/7 1/5 1/2 1/3 1 Λ max = , C.R. =.86 <.1 Table 3. The judgment matix of intenal opeation pefomance indicatos -11-

8 Jounal of Industial Engineeing and Management We will get: A 1 = (.377,.417,.2558,.148,.53,.85,.331) Similaly, the est evaluation index weight of the second can be get: A 2 = (.7854,.1488,.658) A 3 = (.7258,.1721,.12) A 4 = (.5396,.297,.1634) The fist laye evaluation index weight just as follows: A = (.943,.3291,.196,.467) 3.3. Establish fuzzy judgment matix R, detemine the safety level Accoding to the foegoing fuzzy membeship functions, evey evaluation index belongs to the membeship of each evaluation gades is sepaately calculated, then the coesponding fuzzy judgment matix R can be get. Fo example (with othe slightly), the fuzzy judgment matix of U1 is as follows: R 1 = Then the esults can be obtained: B 1 = A 1 R 1 = (.4643,.2643,.171,.792,.331) Similaly, we can get the follows esults: B 2 = A 2 R 2 = (.8495,.137,.198,, ) B 3 = A 3 R 3 = (.7346,.163,.149,, ) B 4 = A 4 R 4 = (.664,.3111,.25,, ) -111-

9 Jounal of Industial Engineeing and Management Then the fuzzy elation matix of compehensive evaluation is as follows: R = Fuzzy compehensive evaluation vecto is as follows: B = A R = (.714,.238,.144,.6688,.2858) B indicates the oveall evaluation esults of pefomance evaluation indicato set U belonging to the membeship of each evaluation gade. By the weighted aveage pinciple, safe level can be expessed with a single integated value. Logistics entepise tanspot pefomance evaluation index system ae ated absolute high, vey high, highe, slightly high, geneally high, the coesponding weighted vecto γ = (.95,.85,.75,.65,.55). The coesponding compehensive evaluation which detemined by the expet goup ae just as follows: [1,.95], (.95,.85], (.85,.75], (.75,.65], (.65,.55], (.65, ]. Evaluation vecto B is nomalized befoe the Calculation of compehensive value, the esults ae as follows: B 1 = (.243,.1383,.89,.3711,.1586) B 2 = (.721,.119,.1681,, ) B 3 = (.7347,.164,.149,, ) B 4 = (.664,.311,.25,, ) B = (.3563,.1152,.521,.3338,.1426) Accoding the fomula (6), we can get the esults: Z 1 =.743, Z 2 =.95, Z 3 =.913, Z 4 =.914, Z =.771 Accoding to the compehensive evaluation citeion, we can get the esults: Z 1 (.75,.65], Z 2, Z 3, Z 4 (.95,.85], so thee ae thee evaluation indexes of tanspot pefomance evaluation index system of logistics entepise ae in elatively high state, and thee is one index is in slightly high state; -112-

10 Jounal of Industial Engineeing and Management Z =.771 (.85,.75], so, the tanspot pefomance evaluation index system of logistics entepise is in highe state. 4. Conclusions Though the above model analysis, we know that the choice of logistics entepises tanspotation pefomance evaluation index system is in the condition of elatively high, which has cetain guiding significance to impove tanspot efficiency and educe tanspotation cost fo the logistics entepise. Specifically, the logistics entepise can do some thing to impove the situation, just as the following aspects: (1) Impove the delivey on-time ate: safe inventoy capital takes up huge numbes fo logistics entepises, so many companies now begin to intoduce JIT management thoughts, namely in the most need to be in place in the most timely manne, make inventoy capital to minimum. (2) Impove the logistics cost contol level: in today's society custome equiements diffe in thousands ways, the logistics cost appeas positive diection change as the change of the logistics sevice level, also the absolute logistics cost must have the ising tend. But fo logistics entepises logistics cost contol is not helpless, it can change along with the maket situation, competitos, poduct chaacteistics and seasonal change. Like gloves poducts fo constuction entepise, has a common, pice fluctuation is small, the dosage consumption is stable, low-value and easy pocuement, can be long-tem pesevation. Using the total odes to integate the esouces can geatly educe logistics costs. (3) Keep and incease maket shae: maket shae becoming highe shows the stonge competition ability of the entepise opeation and management. Entepise maket shae continuously extend, can make the entepise to obtain some fom of monopoly which will lead to monopoly pofits as well as keep competitive advantage. (4) Impove the level of logistics management infomatization: moden logistics is egaded as "the thid pofit souce" in the economic developing, logistics management infomatization is the soul of the moden logistics. The ealization of logistics management infomatization is the guaantee of impoving logistics entepises pofit magin. In a wod, highe equiements ae put fowad in the time fo moden logistics infomatization, automation, netwok, intelligent, flexibility. The key objective of moden logistics sevices in the whole logistics pocess with the minimum compehensive cost to meet the needs of customes. Moden logistics entepises should stictly follow this goal, accoding to thei own advantages and policy guidance to build a safe and efficient ciculation chain. Acknowledgment The eseach wok was sponsoed by the humanities and social science eseach depatment of Education Depatment of Hebei Povince, poject numbe is SQ

11 Jounal of Industial Engineeing and Management Refeences Chen, Z.Y., Cheng, Q.B., & Chen, W.Y. (27). Study on Balanced Scoecad and Analytic Hieachy Pocess s Application to Distibution in Ou County. Logistics Sci-Tech, 1, Guan, X. (211). Pefomance Evaluation fo Coal Logistics Tanspotation Netwok. Logistics Technology, 8, Li, Q., Wang, Z., & Han X. (29). Based on facto analysis of the pefomance evaluation of oad tanspotation eseach. Highway taffic technology, 2, Nie, X., Zhang, Y., & Yang, D. (25). A Risk Assessment Method Based on AHP and Fuzzy Theoy. Jounal of Beijing Electonic Science and Technology Institute, the second issue, 2, Qu, Q., & Wang, M. (212). On Constucting the Low Cabon Supply China Management Pefomance Evaluation Model. China Business and Maket, 3, Wei, R. (26). Index system of tanspotation pefomance evaluation and its constuction. Logistics technology, 4, Yuan, T., & Meng, Y. (213). Demonstation analysis fo the low-cabon factos index system of logistics entepises. Jounal of Industial Engineeing and Management, 1, Zhang, Z. (27). Analysis of logistics tanspotation outsoucing contacts and pefomance evaluation. Communications Science and Technology Heilongjiang, 1, Jounal of Industial Engineeing and Management, 213 ( Aticle's contents ae povided on a Attibution-Non Commecial 3. Ceative commons license. Reades ae allowed to copy, distibute and communicate aticle's contents, povided the autho's and Jounal of Industial Engineeing and Management's names ae included. It must not be used fo commecial puposes. To see the complete license contents, please visit

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