Logistics Performance Comprehensive Evaluation Based On Principal Component Analysis (PCA)

Logistics plays an important role in the running and development of enterprises. In enterprises, integrated evaluation on logistics performance has been an organic part of planning and controlling. Overall and rational performance evaluation has important function on the survival and development of enterprises. This paper designs an indexes system with two levels, considering financial affairs, customer, market, business, and innovation.In this paper Principal Component Analysis (PCA) is used to search logistics performance. Multi-index is turn to less indexes, and a more objective weight is put forward. After finding the disadvantages of PCA, Weighted Principal Component Analysis (WPCA) is presented, which reflects the preferences of decision-makers and reality. According to this, a model is created for logistics performance evaluation of enterprise. Then, this paper presents an integrated evaluation Class Weighted Principal Component Analysis (CWPCA) model for logistics performance. This model combines the subjectivity of AHP with the objectivity of PCA and not only allows for the weight of all indexes but includes the weight of all aspect of logistics performance. Evaluation steps and procedures are established to evaluate the logistics performance of enterprise. An example shows this method can evaluate the logistics performance effectively. Evaluation results are more objective and rational.