EVALUATING EFFICIENCY OF SERVICE SUPPLY CHAIN USING DEA (CASE STUDY: AIR AGENCY)

Indian Journal Fundamntal and Applid Lif Scincs ISSN: 22 64 (Onlin) An Opn Accss, Onlin Intrnational Journal Availabl at www.cibtch.org/sp.d/jls/20/0/jls.htm 20 Vol. (S), pp. 466-47/Shams and Ghafouripour Rsarch Articl EVALUATING EFFICIENCY OF SERVICE SUPPLY CHAIN USING DEA (CASE STUDY: AIR AGENCY) Fatmh Shams and *Aman Allah Ghafouripour 2 Dpartmnt Industrial Enginring, Krman Branch, Islamic Azad Univrsity, Krman, Iran *Author for Corrspondnc ABSTRACT Supply chain concption was firstly formd in productiv corporations, but incrasing highlight srvic sctor in today s world, rcntly addrssing this concption in srvic corporations hav bn xpandd. Du to fast dvlopmnt srvics during th rcnt yars, nd for productivity and prformanc valuation srvic supply chain to gain comptitiv advantag and mpowr conomic growth has bn cratd. In this dissrtation, to dtrmin dcision making units, Giti Sir Kimia Air Agncy supply chains hav bn dtctd. Thr ar ths supply chains in this study. Thn by applying xprt commnts, indics affcting on prformanc valuation ar dtrmind and owing to conductd studis, valuation indics hav bn split into 2 spctrums input and output indics. Also, by mploying 4 rsarchs, 4 Air Agncy which hav th supply chain similar to Giti Sir Kimia Air Agncy hav bn chosn. Evntually, for ach supply chains Giti Sir Kimia Air Agncy, a DEA modl has bn sktchd and in ordr to analyz Giti Sir Kimia Air Agncy in diffrnt sctors, supply chain has bn solvd using DEA Frontir stwar. Kywords: Srvic Supply Chain, Data Envlopmnt Analysis, Undsirabl Input INTRODUCTION In ordr to xtnd an fficint and ffctiv supply chain, prformanc valuation is critical and ncssary. Supply chain managmnt is on th main factors organization s survival. That s why, supply chain managmnt lik othr managrial systm and guidlin rquirs acquiring customr dmands; aiding organization to prciv procsss and discovr knowldg which organizations havn t bn prviously awar and vntually organizd planning to nhanc organization condition. Dspit incrasing attntion to srvic supply chain managmnt by xprts and acadmics, prformanc valuation srvic supply chain is still unknown. A grat dal srvic corporations hav found that in ordr to hav an fficint and ffctiv srvic supply chain, thy nd prformanc valuation srvic supply chain, bcaus prformanc valuation is an undrlying lmnt for planning, control and ffctiv dcision making. In fact, masuring systms plays th most important rol in monitoring, incntiv incras, communication nhancmnt and prvnting rror in organization. This systm is accountd as a considrabl aid to rviw and progrss objctivs organization s srvic procsss. Rsults obtaind from this assssmnt and rlatd fdback systms ar considrd as on factors affcting on organization s succss. Prformanc valuation supply chain in srvic sctor using mathmatics and opration in rsarch modls such as DEA and dtcting fficincy and productivity ar concptions which ar dtrmining input and output ratios an conomic systm. Efficincy nhancmnt in an ntrpris mans a confidnt way to ascnd mor comptitivnss and pritability powr. DEA approach is on bnficial tools to masur fficacy multipl ntrpriss with th sam structur. Hr, supply chain srvic organization has bn invstigatd upon which stratgis can b proposd which tak infficint dcision making units toward fficincy and du to fundamntal importanc agncis in tourism industry and bcaus this issu that basd on invstigations hav bn conductd so far, srvic supply chain no air agncy has bn valuatd. Ncssity conducting a rsarch in dimnsion fficincy has bn flt. Litratur Rviw By xtnsion markts globalization, th only way to sustain corporations and organization is dpndnt on scalating comptitivnss and acquiring sustainabl comptitiv advantag. Today, comptition Copyright 204 Cntr for Info Bio Tchnology (CIBTch) 466

Indian Journal Fundamntal and Applid Lif Scincs ISSN: 22 64 (Onlin) An Opn Accss, Onlin Intrnational Journal Availabl at www.cibtch.org/sp.d/jls/20/0/jls.htm 20 Vol. (S), pp. 466-47/Shams and Ghafouripour Rsarch Articl among individual firms has bn rplacd by comptition btwn chains. That s why; calculating fficincy supply chain is accountd as on important issus, bcaus chains can t b managd without masuring thir fficincy. Th main purpos to calculat a supply chain is to gain th maximum intrst with th last cost. In rcnt dcad, srvic givr organizations hav bn rapidly dvlopd. Accordingly, nds for crativ srvics to accurat conomic growth ar mor flt. Baltacioglu t al., (2007) has also approachd to propos procdurs for srvic supply chain. Thy hav introducd procsss such as dmand managmnt, capacity and rsourc managmnt, customr rlationship managmnt, supplir rlationship managmnt, ordring procsss managmnt, srvic prformanc managmnt, information managmnt, tchnology managmnt. In this approach, srvic prformanc managmnt can b dfind as a ky function srvic supply chain. Chin (20) has takn an action to valuat supply chain and has introducd supply chain productivity and also has followd to valuat prformanc supply chain in a grat dal productiv firms and basd on obtaind productivity, corporations hav bn rankd. In thir rsarch, critrion to asss is intrnal wast rduction. Srvic Supply Chain Each commrcial organization is at last a part supply chain and many organizations ar a part svral supply chain. Numbr and kind organizations in a supply chain is dtrmind in virtu that supply chain is production-orintd or srvic-orintd. Bfor illustrating supply chain, at first w hav to rviw srvic diffrncs, bcaus that s why th concption supply chain for productiv and srvic corporations is diffrnt with ach othr. Th first diffrnc btwn srvics and products is product intangibility which will lad to hardnss in saving. An ntrtainmnt park proposs an intangibl product lik hobby. Saving hobby is impossibl for an Entrtainmnt Park and it can t sav it in th sasons which thr ar fwr dmands and proposs than in th sasons which thr ar high dmands. This xampl xhibits anothr viw and concption about srvics which ar calld production and consumption simultanity (Azar, 2009). Exactly, at th tim whn dmand is cratd for srvic, srvic givrs hav to provid srvic whil good producrs don t hav this problm. In fact, procsss production, distribution and consumption ar simultanous. That is, to giv srvics, both clint and srvic givr hav to b prsnt. Customr incorporats in production procss. As an xampl, prssors ar considrd as providrs ducational srvics and studnts ar considrd as clints. In fact, valu is cratd by intraction xistd btwn srvic givr and clint (Razmi, 2009). Unlik productiv corporation in which valu and production is xistd in th factory, rsult production in srvic corporations is initiatd in an intraction btwn purchasr and srvics givr (Azar, 2009). Most intangibl srvics ar rducd by sal. Intangibl productions ar not finishd and ar unintrruptdly sold. For xampl, a lawyr whom is advising his/hr clint dosn t man that aftr this sssion, h has lss advic to giv to th nxt clint (Razmi, 2009). In fact, in virtu this issu that product providd by srvic givr is a procss and an activity nor physical good, so, its counting is impossibl. In fact, in srvics, invntory rat has bn substitutd by srvic giving capacity. Srvic intangibility is th rason bhind this contnt that why numbr logistic practics ar not applicabl in srvic supply chain. Transportation is on ths activitis. In srvic supply chain, physical flow srvics from supplir to consumr and vntually customr is not intrnally impossibl (Azar, 2009). Anothr fatur which is distinguishing srvic from good is homognity or htrognity. Htrognity or homognity mans that srvics can b asily standardizd. Each customr xprincs diffrnt srvic which h/sh rcivs. Dpndnt on customr s viw toward srvics, atmosphr in which srvics ar rcivd is diffrnt. Srvic firms ar mploy-basd. Effct human aspcts on oprations srvics is so considrabl which is along with complxitis pr s. Engaging popl with procss rquirs divrs attituds in srvic supply chain. In this contxt, rol human rsourc as a primary function is inspctd (Chn and Yan, 20). Ultimatly, srvics ar non-transfrabl du to th not bing abl to savd, intangibility, htrognity as wll as coincidnc. This fatur is on anothr diffrntiation btwn srvics and physical goods (Azar, 2009). In this rgard, th following dfinitions Copyright 204 Cntr for Info Bio Tchnology (CIBTch) 467

Indian Journal Fundamntal and Applid Lif Scincs ISSN: 22 64 (Onlin) An Opn Accss, Onlin Intrnational Journal Availabl at www.cibtch.org/sp.d/jls/20/0/jls.htm 20 Vol. (S), pp. 466-47/Shams and Ghafouripour Rsarch Articl srvic supply chain can b frd. Srvic supply chain for srvic industry is accountd as an organization s ability to initiat communication channls for fficint connction with th customr. Srvic supply chain is including rsponsivnss to ffctivnss and control (Haas and Hansn, 200). On th first prsons who hav providd a comprhnsibl dfinition srvic supply chain managmnt is Ellram. In srvic firms, thr is no good quation pr s. Srvic supply chain managmnt is how to manag information, procsss, rsourcs and prformancs srvics from th initial supplir to th final clint (Sampson, 2000). Srvic supply chain is a ntwork supplirs, srvic givrs, clints and othr supportiv units which ar doing task intractions rquird for rsourcs to produc srvics. Intraction and xchang ths rsourcs is don within supportiv and main srvics and ths srvics ar bing dlivrd to th clint (Baltacioglu t al., 2007). But amndd dfinition srvic supply chain is: How to manag information, procsss, capacitis and prformanc srvics and capitals from th initial supplir to th final clint (Ellram, 2004). DEA DEA is a contraction Data nvlopmnt analysis which is non-paramtric mathmatic tchniqu to assss dcision making units which hav multipl inputs and outputs. Calculating fficincy has bn always addrssd in prformanc valuation a company or organization du to its importanc. Farrll in 97 by mploying a mthod lik fficincy masurmnt in nginring issus has followd to masur fficincy in productiv units. A cas which has bn rgardd by Farrll to masur fficincy includd an input and output. Charns, Coopr and Rhods hav dvlopd Farrll commnt and proposd a pattrn which is abl to masur fficincy with multipl inputs and outputs. This modl is namd DEA. Data Envlopmnt Analysis Modls Main modls Data nvlopmnt analysis ar split into 2 catgoris CCR and BCC modls. Each on aformntiond modls can b introducd as input-basd and output- basd ons. On th faturs DEA is Rturn to Scal (RTS). RTS can b variabl or fixd. RTS mans that incras in input valu will lad to incras in output qually. In variabl rturn, incras in output is mor or lss than incras rat in input. MATERIALS AND METHODS Rsarch Mthodology Studid sampl in this study is Giti Sir Kimia Air Agncy. Also, statistical population in this dissrtation includs Fars Sir Darius Air agncy, Parvaz Star, Pravaz Shiraz, Hjrat Shiraz, bcaus ths air agncis hav a similar supply chain and it will caus bttr dcision making in prformanc valuation. In this qury, to dfin input and output indics rquird for valuating prformanc fficincy supply chain in Giti Sir Kimia Air Agncy, rfrncs such as forign and local studis and paprs hav bn mployd. Rsult ths studis and invstigations was numbr initial input and output indics which wr survyd by numbr xprts and scholars air agncy and som thm wr chosn as final indics. Data collction mthod has bn intrviw with air agncy managmnt and mploys in diffrnt dpartmnts and clints. In this study, for ach srvic supply chains in Giti Sir Kimia Air Agncy, a data nvlopmnt analysis modl basd on dtrmind indics was dsignd and it is solvd using DEA Frontir stwar with th aim analyzing Giti Sir Kimia Air Agncy in diffrnt sctors supply chain. RESULTS AND IDSCUSSION Rcommndd Stratgis To valuat prformanc srvic supply chain, th following stps can b don: Stp : Dtcting air agncy supply chains Stp 2: Dtcting indics srvic supply chain Stp : Data collction Copyright 204 Cntr for Info Bio Tchnology (CIBTch) 468

Indian Journal Fundamntal and Applid Lif Scincs ISSN: 22 64 (Onlin) An Opn Accss, Onlin Intrnational Journal Availabl at www.cibtch.org/sp.d/jls/20/0/jls.htm 20 Vol. (S), pp. 466-47/Shams and Ghafouripour Rsarch Articl Stp 4: Undsirabl input Stp : Proposing an appropriat modl Stp 6: Modl analysis Stp 7: Crating virtual unit Stp : Dtcting Air Agncy Supply Chains Srvic chain in all air agncis in this qury ar similar and th sam in ordr to hav capability to valuat and cit findings and xploit thm in ordr to progrss and acquir mor shar in markt. Srvic chain has bn shown in figur. Figur : Srvic supply chain air agncy Stp 2: Dtcting Indics Srvic Supply Chain Rspctiv indics hav bn split into 2 input and output parts and hav bn illustratd in tabl. Tabl : Inputs and outputs DEA Outputs Waiting tim Employ bhavior Pric Fulfill obligations Notic Availability Inputs Numbr srvic givrs Th avrag fixd Th avrag variabl Avrag mploy xprinc Stp : Data Collction In this stp, information and data rlatd to ach critrion using information rcordd in Giti Sir Kimia Air Agncy and othr opponnt air agncis hav bn collctd. How to collct som outputs is basd on -points Likrt scal owning to bing qualitativ and involving clint commnts in prformanc valuation. Stp 4: Undsirabl Input Basic modls DEA with th input-output natur in prformanc valuation hav bn sktchd in a way that taks dcision making unit to th lvl prformanc which producs th maximum output by spnding th last input, but various cass factors in dcision making units ar dtctd as input which hav bn considrd undsirabl in trms opration lik mploy xprinc. As prsnt modls Copyright 204 Cntr for Info Bio Tchnology (CIBTch) 469

Indian Journal Fundamntal and Applid Lif Scincs ISSN: 22 64 (Onlin) An Opn Accss, Onlin Intrnational Journal Availabl at www.cibtch.org/sp.d/jls/20/0/jls.htm 20 Vol. (S), pp. 466-47/Shams and Ghafouripour Rsarch Articl ar usd in ths cass, undsirabl inputs will b dcrasd, whil w ar willing to incras it in practic. Thus, in DEA modls, possibility to incras ths kinds inputs must not b providd. That s why in this qury, undsirabl input Employ xprinc avrag has bn considrd as an output in modl solving procss so that its incras crats mor utility. Stp : Proposing an Appropriat Modl Mathmatic modl prformanc valuation has bn proposd aiming to maximiz output and focus on ach srvic supply chains (Tickt issuanc, visa issuanc, travl tour, pickup visa, hotl rsrvation, mbassy appointmnt, airport transfr) in Giti Sir Kimia Air Agncy against opponnt air agncis (Fars Sir Darius Air agncy, Parvaz Star, Pravaz Shiraz, Hjrat Shiraz). This modl with 0 dcision making variabls and 6 constraints catgorizd for ach srvic supply chain has bn laboratd in th following: Figur 2: DEA concptual modl Tabl 2: Paramtrs and signs prformanc valuation mathmatic modl Dfinition Input countr Output countr )DMU(Dcision Making Unit countr Studid dcision making unit Numbr inputs Numbr dcision making unit Numbr outputs Valu i th input for j th dcision making unit Valu r th output for j th dcision making unit Tabl : Variabls and signs prformanc valuation mathmatic modl Dfinition Targt function dcision making unit Wight i th input Wight r th output Signs I R J P M N S Signs Evntually, mathmatic modl prformanc valuation with th aim to maximiz output and focus on ach srvic supply chains in air agncis is as th following quation. Copyright 204 Cntr for Info Bio Tchnology (CIBTch) 470

Indian Journal Fundamntal and Applid Lif Scincs ISSN: 22 64 (Onlin) An Opn Accss, Onlin Intrnational Journal Availabl at www.cibtch.org/sp.d/jls/20/0/jls.htm 20 Vol. (S), pp. 466-47/Shams and Ghafouripour Rsarch Articl S.t: Modl Analysis and Crating Virtual Unit Envlopmnt solution in input natur is dirctly showing rlativ fficincy invstigatd units. Providd that targt function valu for dcision making unit is qual to, that is studid unit is fficint (Z=) and if its valu is lss than, inspctd unit is infficint (Z< ). In th following tabl, fficincy ach Giti Sir Kimia Air Agncy supply chains has bn dtrmind. Tabl 4: Prformanc valuation rsults srvic supply chain Efficincy Giti Sir Kimia Air Agncy supply chain Forign tickt- Local tour-2 Forign tour - Embassy appointmnt -4 Hotl rsrvation - 0/92 Pickup visa -6 0/899 Local tickt -7 0/890 Visa issuanc -8 0/7889 Airport transfr -9 In th following, by forming virtual unit for infficint dcision making units, to nhanc ach input and output to rach fficincy bordr, it is frd that dcision making unit can guarant mor output at th xpns lss input which hav bn xhibitd in th following tabl: Tabl : Rat inputs and outputs progrss (Crating virtual unit) in pickup visa s supply chain in Giti Sir Kimia Air Agncy Availabilit y 2. Notic Fulfill obligatio ns.6 Output Pric srvic giving. Employ bhavior.4 Waitin g tim 2. 2. Avrag mploy xprinc.79 Input Th avrag variabl 60 4.799 Th avrag fixd 80 76.20 6 Numb r srvic givrs 0.7 0.28728 Progrs s rat Currnt valu Rat progrss for bing fficint Copyright 204 Cntr for Info Bio Tchnology (CIBTch) 47

Indian Journal Fundamntal and Applid Lif Scincs ISSN: 22 64 (Onlin) An Opn Accss, Onlin Intrnational Journal Availabl at www.cibtch.org/sp.d/jls/20/0/jls.htm 20 Vol. (S), pp. 466-47/Shams and Ghafouripour Rsarch Articl Tabl 6: Rat inputs and outputs progrss (Crating virtual unit) in local tickt issuanc s supply chain in Giti Sir Kimia Air Agncy Output Input Progrs s rat Availabilit y 4. Notic.7 Fulfill obligatio ns Pric srvic giving.. Employ bhavior.8 Waitin g tim 4. 4.7 Avrag mploy xprinc Th avrag variabl Th avrag fixd Numb r srvic givrs Currnt valu Rat progrss for bing fficint Copyright 204 Cntr for Info Bio Tchnology (CIBTch) 472..6460 42.0649 4 990 884.22. 2.6899 Tabl 7: Rat inputs and outputs progrss (Crating virtual unit) in airport transfr s supply chain in Giti Sir Kimia Air Agncy Output Input Progrs Availabilit y Notic Fulfill obligatio ns Pric srvic giving Employ bhavior Waitin g tim Avrag mploy xprinc Th avrag variabl Th avrag fixd Numb r srvic givrs s rat 2 4 70 0.6 Currnt 6. 6. 2 4.062 0. 6 4.666 7 0.2297 valu Rat progrss for bing fficint Tabl 8: Rat inputs and outputs progrss (Crating virtual unit) in visa issuanc s supply chain in Giti Sir Kimia Air Agncy Output Input Progrs s rat Availabilit y Notic.2 Fulfill obligatio ns.06 Pric srvic giving 4 4 Employ bhavior Waitin g tim 4. Avrag mploy xprinc.80709 Th avrag variabl 27 04.009 7 Th avrag fixd 200 6.898 0 Numb r srvic givrs.2 0.608 0 Currnt valu Rat progrs s for bing fficint Conclusion Today, airlins nd to b awar thir position and rivals mor than th past to sustain in comptitiv markt. For this purpos, thy hav to acquir prcis information from thir fficincy compard with othr airlins using scintific mthods. In this dissrtation, among 9 invstigatd supply chains in this air

Indian Journal Fundamntal and Applid Lif Scincs ISSN: 22 64 (Onlin) An Opn Accss, Onlin Intrnational Journal Availabl at www.cibtch.org/sp.d/jls/20/0/jls.htm 20 Vol. (S), pp. 466-47/Shams and Ghafouripour Rsarch Articl agncy, supply chains wr known fficint and othrs wr infficint. Thn, by considring virtual units for infficint chains, an appropriat modl was introducd upon which managrs ths units in addition to ral prcption thir organization s plac among othr similar organizations, thy can also compar inputs and outputs organization s supply chain. In this cas, plus having mor productivity in strngths, thy amnd thir wak points. In this dissrtation, DEA has bn applid using crisp data. As a conclusion, du to importanc prformanc valuation srvic supply chain, using othr modls DEA with fuzzy data and domain numbrs and intgratd modls DEA has bn rcommndd. REFERENCES Azar Adl (2009). Prformanc Evaluation and a Rsarch using Data Envlopmnt Analysis. Baltacioglu T t al., (2007). A Nw Framwork for Srvic Supply Chains. Th Srvic Industris 27(2) 6. Charns A, Coopr WW and Rhods E (978). Masuring th fficincy dcision making units. Europan Journal Oprational Rsarch 2(6) 429-444. Chn and Yan Hong (20). Ntwork DEA modl for supply chain prformanc valuation. Europan Journal Logistics Managmnt 8(2) 2-27. Ellram L, Tat W and Billington C (2004). Undrstanding and managing th srvics supply chain. Journal Supply Chain Managmnt 40(4) 7 2. Haas DH and Hansn AP (200). Facilitis Managmnt in a srvic supply chain prspctiv. In: Logistics and Supply Chain Managmnt in a Globalisd Economy, Arlbjørn JS (200), Procdings th 22nd Annual NOFOMA Confrnc Dpartmnt Entrprnurship and Rlationship Managmnt, Univrsity Southrn Dnmark, Kolding 6-64. Kathawala Y and Abdou K (200). Supply chain valuation in th srvic industry: a framwork dvlopmnt compard to manufacturing. Managrial Auditing Journal 8(2) 40-49. Mhrgan Mohammad Rza (2004). Quantitativ Modls to Evaluat th Prformanc Organizations. Razmi R Rzai (2009). Providing a dcision making support modl for planning. Assssmnt and Slction Supplirs. Sampson SE (2000). Customr-supplir duality and bidirctional supply chains in srvic organizations. Intrnational Journal Srvic Industry Managmnt (4) 48-64. Copyright 204 Cntr for Info Bio Tchnology (CIBTch) 47