A COMPARATIVE STUDY ON EFFICIENCY OF TWO DIFFERENT CIRCULATION MODES OF AGRICULTURAL PRODUCTS BASED ON DEA MODEL: WHOLESALE MARKET AND LOGISTICS DISTRIBUTION CENTRE
Yaoting Chen1, Xiaowei Lin2
1School of history and social development of Minnan Normal University, No.36, Xian Qian Road Zhangzhou in Fujian province, China
2School of Management of Minnan Normal University No.36, Xian Qian Road Zhangzhou in Fujian province, China
The purpose of this study is to find out the relatively efficient circulation mode of agricultural products through a comparative analysis on the operating efficiency of two different circulation modes of agricultural products: wholesale market and logistics distribution centre. Based on the input and output data collected from the survey of the main representatives of enterprises in the two modes in Zhangzhou, Fujian, including: fixed assets, number of employees, main business cost, main business net profit, gross margin, the paper uses Data Envelopment Analysis to conduct the analysis. The results show that the third party logistics mode based on logistics distribution centre is relatively more efficient, comparing with the traditional wholesale market mode. Therefore, in order to reduce circulation cost of agricultural products, and to promote the development of agricultural industry, it is necessary to make policies to encourage the development of the third party logistics mode based on logistics distribution centre.