Performance Evaluation of Pallet Rental Companies: A Non-Oriented Super-Efficiency Integer-Valued DEA Model

Pallets play an important role in logistics. It is well known that pallet rental is beneficial to both pallet users and society, and the pallet rental industry is very large nowadays. A non-oriented super-efficiency integer-valued DEA (data envelopment analysis) model for the performance evaluation of pallet rental companies is presented. The method differs from traditional models in that (1) it can be used to accurately estimate the performance of efficient pallet rental companies with integer-valued and real-valued variables; (2) it is an alternative approach to providing numerical super-efficiency scores for efficient pallet rental companies when input-oriented or output-oriented VRS (variable returns to scale) super-efficiency models are infeasible for them. A case study of nine pallet rental companies proves the advantages of the proposed model, and it shows that the efficiency gap among pallet rental companies is very large. Based on the results, some suggestions on the development of the pallet rental industry are proposed. The methodology and results would provide valuable contributions to the decision-making processes of both pallet rental companies and their customers.