PERFORMANCE IMPROVEMENT DECISION AID SYSTEMS (PIDAS) IN RETAILING ORGANIZATIONS USING DATA ENVELOPMENT ANALYSIS

This paper investigates the usefulness of Data Envelopment Analysis (DEA) models to aid decision making in multi-level retail organizations. It is argued that market efficiency is a key performance measurement dimension in retail organizations. The paper proposes three variants of market efficiency that correspond to different tiers of management in a multi-level setting. The disentanglement of market efficiency will lead to the development of the Performance Improvement Decision Aid System (PIDAS) which seeks to classify units on clusters of different performance profile. The method is illustrated using data from a restaurant chain in the UK.