Research into Performance Evaluation with the Application of DEA-A Case Study of Automobile Dealer

摘要

The Data Envelopment Analysis, DEA was adopted in this study to explore the relative operational efficiency of the 17 automobile dealers in Kaoshuing. In terms of factor selection criteria, the four input factors include: operating cost, operating expenses, year-end bonus, and the number of employees. On the other hand, there are two output factors, including gross profit margin and operating profit margin. Using operational data from April 2016 to March 2017 totaling 12 months. The results show that the automobile dealers with overall efficiency accounted for 29.41%. As the relative efficiency was reached, there was no need to make further adjustments, but to continue with the existing operating mode and scale. The operational inefficiency of the automobile dealers that came from pure technical inefficiency accounted for 70.59%. In order to improve the inefficiency condition, one should start from the management aspect to adjust the resource allocation method and maximize output through the most appropriate input and output portfolios. The automobile dealers' operational inefficiency that came from scale inefficiency accounted for 17.65%. In particular, those in the increasing returns to scale stage should enhance the scale to improve efficiency, while those in the decreasing returns to scale stage should therefore reduce the production scale to improve efficiency. The ratio of the automobile dealers' operational efficiency that came from pure technical inefficiency and scale inefficiency reached as high as 70.59%. In order to improve the inefficiency condition, it is suggested that managers refer to the recommended benchmark automobile dealers in this study as the learning objects.