EFFICIENCY ANALYSIS IN SPARE PART RETAIL USING DATA ENVELOPMENT ANALYSIS

Regita, Hawari (2020) EFFICIENCY ANALYSIS IN SPARE PART RETAIL USING DATA ENVELOPMENT ANALYSIS. Diploma thesis, Universitas Andalas.

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Abstract

The retail business sector contributes a large per capita to Indonesia so this sector has a vital role in the Indonesian economy. The retail business in Indonesia is growing day by day, and business competition is showing quite rapid development, especially on spare part retail businesses in Padang. The sales of spare parts from year to year do not increase significantly. The number of players entering this market makes competition is building up. One of them is the spare parts retailer who has established business since 1974 and already has five branch stores in Padang. In the current conditions, the potential of spare parts retail business has not realized and has not organized optimally. It is necessary to measure efficiency to determine the performance of spare parts retail business processes, so players in this business can improve their business and can compete with other competitors. Based on the problems that have been explained, it is needed an efficiency analysis on the spare parts retail business to measure the efficiency level of the company, so the company can implement improvement to improve the efficiency level and can through market competition. Efficiency analysis was conducted on one spare part retailer that already has five spare part retail branches in Padang using Data Envelopment Analysis method, which uses an input-oriented BCC model. This model was chosen because the retail business is a dynamic sector, so changing in input or output does not affect the other linearly. In other words, changing the values of input does not cause a change in outputs in the same amount. The inputs used in this study are the size of the land, number of employees, number of deliveries, total costs. The output used in this study is a number of customers and number of sales. The results of relative efficiency analysis represent that four retails have been operating relatively efficiently in period one and period two, namely retail 1, 2, 3, and 4, while retail 5 is relatively inefficient. Then, in period three, the number of retailers relatively efficiently is decreased to two retailers, namely retail 2 and 4, while retail 1, 3, and 5, were relatively inefficient. Input factor that dominant contributes to the level of efficiency spare part retail, namely the size of land, number of deliveries, and total costs.

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