Drugstore chain operational efficiency evaluation based on DEA

In this paper, the author studied the evaluation of drugstore chain store operational efficiency through practical research. This paper proposed DEA method to evaluate the pharmacy chain operational efficiency ---on the basis of established index system. According to DEA evaluation results, this paper concludes that there is a gap in the relative effectiveness of each pharmacy chain stores. And based on the technical efficiency of drugstore chain stores, this paper put them into three levels. And then, according to the corresponding pure technical efficiency and scale efficiency, analyze the elements of the input-output indicators of the stores. In the end, this paper suggests improvements to non-DEA efficient stores. This study shows that DEA model is effective to do evaluation of pharmacy chain stores operating efficiency, and hopes that the results of this study will provide a reference for the same industry. Keywordsoperational efficiency; chain pharmacies; DEA