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Measuring Efficiency in Rationalizing the Allocation of Available Resources and the Efficiency of Logistic Processes

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  • Robert Dmuchowski

    (Olsztyn University, Olsztyn, Poland)

Abstract

Enterprises must introduce various changes in their activities, for the purposes they pursue, structures and processes. Business adapts to the external environment that imposes restrictions, forces specific actions aimed at more rational use of resources. Business entities implement innovative ideas in the field of creating new products, manufacturing processes, organizational changes, improving the quality and efficiency of production or services. All these activities are extremely costly, but at the same time necessary for development or survival in a competitive market. Organizations in which the main management strategy is the concept of logistics management, in their activities focus on the improvement of logistics processes in such a way that the unit logistic costs are as low as possible. Measurement of the effectiveness of activities undertaken by economic entities is a standard procedure that allows for a rational allocation of available resources. High efficiency of activities justifies their further intensification, while low efficiency is a warning signal indicating their reduction or even discontinuation. The purpose of the article is to present the logistics system efficiency indicators that can be used to assess the benefits achieved by organizational entities as a result of optimizing logistics processes. The starting point for the considerations of the presented study is the assumption that the concept of logistics management is the main strategy of the company, and the optimization of logistics processes in the entire supply chain brings economic benefits - greater profitability of projects, and image benefits - better quality of products and services provided. The basic scientific inquiry, not only for the purposes of this thesis, but also the knowledge necessary for managers, is the measurement of this effectiveness.

Suggested Citation

  • Robert Dmuchowski, 2021. "Measuring Efficiency in Rationalizing the Allocation of Available Resources and the Efficiency of Logistic Processes," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 116-123, June.
    • Handle: RePEc:iaf:journl:y:2021:i:2:p:116-123
    DOI: 10.33146/2307-9878-2021-2(92)-116-123
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    References listed on IDEAS

    as
    1. Franca, Rodrigo B. & Jones, Erick C. & Richards, Casey N. & Carlson, Jonathan P., 2010. "Multi-objective stochastic supply chain modeling to evaluate tradeoffs between profit and quality," International Journal of Production Economics, Elsevier, vol. 127(2), pages 292-299, October.
    2. Veronika Fenyves & Zoltán Bács & Laura Karnai & Adrián Nagy & Tibor Tarnóczi, 2018. "Financial Performance Measurement of Hungarian Retail Food Companies," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(4), December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    logistic processes; competitiveness; efficiency; ratio analysis;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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