AN APPRAISAL SYSTEM FOR MONITORING PERFORMANCE OF CONVENIENCE STORES IN TAIWAN.

With service industries achieving almost 70% of GDP, Taiwan has witnessed a major shift in its economic structure, similar to the trends that have been observed elsewhere. The retail sector has shown enormous growth, and Taiwan has seen tremendous growth in convenience stores in recent years, as their density has peaked in many Asian countries. Operating efficiency has become a critical element of success and survival for convenience stores in a highly competitive environment. In this paper, we apply Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI) to investigate the productivity efficiency and monitor the performance of convenience stores, characterized by multiple inputs and outputs. The paper also offers a distribution service system model and management matrix to examine the competitiveness of the store chain as a whole. The findings indicate that DEA can provide useful diagnostic information, and suggest ways to improve efficiency. [ABSTRACT FROM AUTHOR]