An alternative assessment approach to global logistics performance evaluation: Common weight H‐DEA approach

Abstract

The goal of this study is to investigate the objective importance of the categories and sub‐indicators constituting the Logistics Performance Index (LPI) and try to answer which of these LPI's indicators has the most significant importance and to provide a guidance tool for policymakers to devise policies in logistics and transportation. Hence, this study puts forth an integrated multi‐attribute decision‐making technique coalesced with the hierarchical data envelopment analysis and assurance region. For different income groups and regions, this model is employed to reassess the scores and rankings of LPI that are obtained from the World Bank. Displaying a higher objectivity than World Bank's method, the results demonstrate no substantial difference in the rankings obtained under both the proposed and World Bank's methods. Moreover, service delivery performance was found to be more vital to LPI than policy regulations. In terms of global weighting, of the six sub‐indicators, timeliness is the most important. These findings provide a guidance tool for policymakers to devise policies in logistics as well as in transportation. With the common weights that have been utilized, the results may direct toward different priorities in terms of policies, compared to World Bank.