A plethora of present studies has the purpose of analyzing the connection related to the effect of environmental, social, and governance (ESG) on business performance. However, it has still not been able to bring out comprehensive results because of using a single metric to measure performance. Due to that, this research will: (i) use the data envelopment analysis (DEA) method to measure transportation firms’ performance and (ii) use OLS regression to explore the relationship between ESG combined score and business performance. In the first stage, we found out that 43 out of 56 firms work inefficiently. The managers of those companies should utilize their resources and refer to the benchmarking as a sample to follow. The environmental and social scores positively affect business performance in the second stage. Thus, managers should consider ESG as an investment, primarily when transportation is categorized as an “environmentally sensitive industry”. Besides, investors should pay more attention to a company that has ESG activities because that firm has the chance to improve its business performance and deal with its commitments.
The purpose of this article is to determine the safety stock for an omni-channel environment. The “Square Root Law” (for centralization of storage facilities) was proposed to combine the safety stock for both online and offline channels. A simulation study was conducted using a spreadsheet program and three scenarios were created based on review time, lead time and safety factor. This was based on the mean demand and standard deviation of the product's demand distribution. The study found that the sum of lead time and review time are significant in determining the amount of safety stock, and demand variability is a crucial determinant for safety stock. Recommendations are provided as guidelines for lowering the amount of safety stock in omni-channel environment.
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