Branch Efficiency Analysis with a Hybrid DEA-AHP Analysis and Distribution Channel Selection with Linear Programming Model in a Parcel Company


With branches and hubs serving as distribution networks, the parcel delivery industry is a quickly expanding and fiercely competitive industry. The distribution of deliveries has improved recently as a result of growing ecommerce. On-time deliveries are essential to the success of parcel delivery businesses and have a direct impact on client satisfaction. As a result, it is crucial to evaluate the effectiveness of branches that handle last-mile deliveries. The Data Envelopment Analysis (DEA) approach is one of the ways to gauge effectiveness. The Analytic Hierarchy Process (AHP) is a paradigm for multiple criterion evaluation that offers a mechanism for contrasting options by organising criteria according to a hierarchy. An essential strategy for last-mile on-time delivery is the hub-and-spoke business model. First, DEA and AHP were combined in a hybrid model that was used in to assess branch effectiveness. According to the findings, it is suggested to use the Hub-and-Spoke model, which is direct distribution from Hubs, for branches with low efficiency. Second, the LP model was used to pick the distribution channel, which is the branches to remain open, and the regions where the Hub-and-Spoke distribution model can be used, in order to evaluate the model’s correctness.

Author (s) Details

Sebnem Indap
Logistics & Supply Chain Management PhD, Maltepe University, Istanbul, Turkey

Batuhan Kocaoglu
Department of MIS, Piri Reis University, Istanbul, Turkey.

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Keywords – Analytic hierarchy process, distribution channel selection, data envelopment analysis, hub-and-spoke, linear programming, parcel delivery.

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