scholarly journals Order Picking and E-Commerce: Introducing Non-Parametric Efficiency Measurement for Sustainable Retail Logistics

2021 ◽  
Vol 16 (4) ◽  
pp. 846-858
Author(s):  
Matthias Klumpp ◽  
Dominic Loske

Order picking is a crucial but labor- and cost-intensive activity in the retail logistics and e-commerce domain. Comprehensive changes are implemented in this field due to new technologies like AI and automation. Nevertheless, human worker’s activities will be required for quite some time in the future. This fosters the necessity of evaluating manual picker-to-part operations. We apply the non-parametric Data Envelopment Analysis (DEA) to evaluate the efficiency of n = 23 order pickers processing 6109 batches with 865,410 stock keeping units (SKUs). We use distance per location, picks per location, as well as volume per SKU as inputs and picks per hour as output. As the convexity axiom of standard DEA models cannot be fully satisfied when using ratio measures with different denominators, we apply the Free Disposal Hull (FDH) approach that does not assume convexity. Validating the efficiency scores with the company’s efficiency assessment, operationalized by premium payments shows a 93% goodness=of-fit for the proposed model. The formulated non-parametric approach and its empirical application are promising ways forward in implementing empirical efficiency measurements for order picking operations within e-commerce operations.

2019 ◽  
Vol 488 (5) ◽  
pp. 481-485
Author(s):  
V. E. Krivonozhko ◽  
A. V. Lychev ◽  
N. S. Blokhina

Non-convex Free Disposal Hull (FDH) model was proposed in the scientific literature in the end of 20-th century for performance measurement of complex multidimensional production units. FDH model was proposed almost simultaneously with DEA (Data Envelopment Analysis) model. However, as distinct from the DEA models, production possibility set of FDH models are non-convex ones, what significantly refrained the development of these models. As far as we know, the necessity for such approach has been noted in the world scientific literature for a long time. In this paper, an approach is proposed for three-dimensional visualization of FDH models. An approach was tested using real-life data sets from different areas. Computational experiments confirm reliability and effectiveness of the proposed approach.


Author(s):  
Mirpouya Mirmozaffari ◽  
Gohar Azeem ◽  
Azam Boskabadi ◽  
Ali Aranizadeh ◽  
Aditya Vaishnav ◽  
...  

During the past decade, applying nonparametric operation research problems such as Data Envelopment Analysis(DEA) has received significant consideration among researchers. In this paper, a new DEA-based SBM-FDH model is introduced. Finally, productivity evaluation for banking systems in Malmquist Productivity Index (MPI) based on the proposed model has been compared with Slack Based Measurement (SBM) and Free Disposal Hull (FDH). The obtained results confirm the high performance of the proposed model in comparison to the other models used in this paper.                                                                                                                                                                                                                                                                                                                           


2019 ◽  
Vol 5 (1) ◽  
pp. 46-56
Author(s):  
Supriyono Supriyono ◽  
Ahmad Rodoni ◽  
Yacop Suparno ◽  
Hermadi Hermadi ◽  
Hilyatun Nafisah

In this study, the researcher would make Panin Dubai Syariah Bank was the object of research on Islamic banks that carry out mergers and acquisitions. This research by using quarterly financial reports to determine the level of efficiency of the Panin Dubai Syariah Bank to be analyzed using the Data Envelopment Analysis (DEA) method. The researcher was used the annual report to find out the extent the Panin Dubai Syariah Bank carries out its Shariah values and objectives to be analyzed based on the Maqashid Index Sharia. The frontier approach can be divided into parametric approaches and non-parametric approaches. The parametric  approach  takes  measurements  using  stochastic  econometrics  and  seeks  to  eliminate interference from the effects of inefficiency. While the non-parametric approach with linear programs ( non-parametric linear programming approach ) performs non-parametric measurements using an approach is not stochastic and tends to combine the interference into inefficiency. This is based on the discovery and observation of the population and evaluates efficiency relative to the units observed. In the non- parametric method, the approaches that can be used are Data Envelopment Analysis (DEA) and Free Disposal Hull (FDH). The results of the measurement of Bank Panin Dubai Syariah using DEA indicate that the decision to merge carried out by Panin Syariah Bank with Dubai Islamic Bank was the right decision because, with the merger, Panin Dubai Syariah Bank could produce almost perfect efficiency value of 99% in the year 2015. With doing the merger, Bank Panin Dubai Syariah can minimize the inefficiencies that occur in the input variable so that it can maximize the efficiency that occurs in the output variable


2021 ◽  
Vol 11 (22) ◽  
pp. 10626
Author(s):  
Mehdi Abbasi ◽  
Mohammad Reza Mozaffari ◽  
Peter F. Wanke ◽  
Mohamad Amin Kaviani

Performance evaluation using interactive methods and extended ratio-based approaches can be very important for some organizations. Free disposal hull models can be created if there is no concern for convexity, and using non-radial DEA models can simultaneously create more logical and practical situations for finding DMU targets. In this paper, a new hybrid technique based on the additive slack based method and enhanced Russel measure in variable return to scale technology has been proposed. The proposed technique can find decision making unit targets in non-radial free disposal hull models using the step method. Furthermore, the extended ratio-based approach in the proposed technique has been applied to find DMU targets of related non-radial free disposal hull models without solving any mathematical programming models. Finally, targets of Fars province pharmaceutical distributing companies were found by applying the proposed hybrid technique.


2014 ◽  
Vol 2014 ◽  
pp. 1-8 ◽  
Author(s):  
M. Abbasi ◽  
G. R. Jahanshahloo ◽  
M. Rostamy-Malkhlifeh ◽  
F. Hosseinzadeh Lotfi

This paper deals with evaluating congestion in free disposal hull (FDH) models. There are several approaches in data envelopment analysis (DEA) literatures which discuss the theory and application of congestion. However, almost all of these approaches considered convex DEA technologies. So, in the case of nonconvex technologies, including FDH technology, this field is almost nil. This paper makes an attempt to fill in this void. To do so, this study provides a pairwise comparisons-based algorithm to evaluate congestion in FDH model. This algorithm identifies the sources of congestion and estimates its amounts. It is also capable of detecting the losses amounts of output due to congestion. The validity of the proposed model is demonstrated using some numerical and empirical examples.


2017 ◽  
Vol 1 (4) ◽  
pp. 225
Author(s):  
Ram Pratap Sinha

Aim: The objective of the paper is to construct an index of fiscal performance of Indian states using four non-parametric approaches ( Data Envelopment Analysis(DEA), Free Disposal Hull(FDH), Order-m and Order-alpha).The reason behind using non-parametric methods for the purpose of construction of index is that the traditional ratio approach is incapable of handling multiple input and output indicators.Research methods: The present study uses a two stage approach. In the first stage, four non-parametric methods have been used to evaluate the performance of Indian states for five consecutive years. The input and output indicators have been selected on the basis of a simple theoretical model. Further, in order to tackle the problem of estimation bias (due to sampling variations) bootstrapped DEA and bootstrapped Order-m methods have been applied. In the second stage ,impact of indebtedness on the performance of the states has been assessed using a censored regression framework.Findings: The major outcome of the study is the construction of a fiscal performance index based on multiple indicators. Moreover, the second stage results indicate that state performance is significantly influenced by their degree of indebtedness.Originality/Value of the article: The present study is perhaps the first attempt to assess the performance of sub-national units in terms of both convex and non-convex mathematical programming methods.Implications of the research : The approach (with suitable  modifications) can be effectively used to benchmark state performance which can serve as a basis for resource transfer from the central government to the states.


2021 ◽  
pp. 135481662110358
Author(s):  
Jorge Vicente Pérez-Rodríguez ◽  
Eduardo Acosta-González

This study was conducted to analyse the influence of technological differences on hotel efficiency in the Canary Islands (Spain), with particular regard to the heterogeneity observed in hotel ownership and size. A metafrontier approach, based on non-parametric deterministic efficiency methods (data envelopment analysis and free-disposal hull) and robust non-parametric estimators (order-α), is used. This empirical analysis considered a panel data sample selection model of Canary Islands hotels for the period 2002–2015. The results obtained show that the frontiers against which the hotels are compared (metafrontier or group) and the consideration or otherwise of outliers are factors of crucial importance. We find that efficiency depends on hotel size (large hotels are more efficient than small ones), but not on the type of ownership. The results also show that the impact of the global financial crisis on the average technical efficiency of these hotels was slight or non-existent. Finally, the technological gap narrowed over time, especially in large hotels and those with no majority shareholder.


2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Kai Xu ◽  
Yiwen Wang ◽  
Fang Wang ◽  
Yuxi Liao ◽  
Qiaosheng Zhang ◽  
...  

Sequential Monte Carlo estimation on point processes has been successfully applied to predict the movement from neural activity. However, there exist some issues along with this method such as the simplified tuning model and the high computational complexity, which may degenerate the decoding performance of motor brain machine interfaces. In this paper, we adopt a general tuning model which takes recent ensemble activity into account. The goodness-of-fit analysis demonstrates that the proposed model can predict the neuronal response more accurately than the one only depending on kinematics. A new sequential Monte Carlo algorithm based on the proposed model is constructed. The algorithm can significantly reduce the root mean square error of decoding results, which decreases 23.6% in position estimation. In addition, we accelerate the decoding speed by implementing the proposed algorithm in a massive parallel manner on GPU. The results demonstrate that the spike trains can be decoded as point process in real time even with 8000 particles or 300 neurons, which is over 10 times faster than the serial implementation. The main contribution of our work is to enable the sequential Monte Carlo algorithm with point process observation to output the movement estimation much faster and more accurately.


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