Integrating the EBM Model and LTS(A,A,A) Model to Evaluate the Efficiency in the Supply Chain of Packaging Industry in Vietnam

Abstract

In recent decades, Vietnamese labeling and packaging has been widely recognized as being one of the fastest developing industries in Vietnam, supported by the tremendous demand of domestic production and the exportation of its packaged goods. The emerging packaging technology trends and the participation of foreign direct investment (FDI) companies have led to fierce competition between all packaging enterprises in Vietnam. This paper aims to calculate the productivity performance of 10 packaging companies in Vietnam from the past to the future by combining the additive Holt-Winters (LTS(A,A,A)) model to predict key variables in the financial statement for the next 4 years (2020–2023) and an epsilon-based measure of efficiency (EBM) model of data envelopment analysis (DEA) to define the developing trend, efficiency, and ranking of packaging operations. The empirical results will assist packaging enterprises to identify their positions, suggest feasible solutions to overcome shortcomings and catch up with the global trends, and propose superior partnerships for manufacturers, which have packaging service demands and support investment decisions for investors. Overall, all the enterprises in the packaging industry have high productivity. In particular, SIVICO JSC is identified as the most efficient packaging company in Vietnam, as it continuously maintains the first ranking over the observation time, followed by Agriculture Printing & Packing JSC and Bien Hoa Packaging Company. In the past, Tan Dai Hung Plastic JSC was identified as the most unproductive unit, while in the future term, the inefficient decision-making units (DMUs) are Tan Tien Plastic Packaging JSC, Sai Gon Packaging JSC, Dong A JSC, and PetroVietnam Packaging JSC. The suggestion for incompetent enterprises is changing the value of inputs proportionally to optimize for better performance.

Output Targeting and Runway Utilization of Major International Airports: A Comparative Analysis Using DEA

“…This recent study showed most of the global trade is seaborne and plays an important role in the national economy of a country. Using the EBM and LTS models, Vietnam was identified as one of the fastest-growing industries, Wang et al [16] integrated these models in evaluating the supply chain of the packaging industry that showed a result that one company in Vietnam achieved a strong efficiency score and high productivity. The DEA method can be used as well in senior care facilities.…”

A Study of Performance Evaluation for Textile and Garment Enterprises

“…The EBM model and gray forecasting were used by Wang et al [28] to evaluate the efficiency of third-party logistics services. Wang et al [29] used the EBM model and the LTS (A, A, A) model to assess the efficiency of the packaging industry's supply chain in Vietnam. The found that the packaging business as a whole has a high level of productivity.…”

“…This framework contains two parameters, one scalar and one vector, which are defined by affinity index in relation to the inputs and outputs. These two factors are used to combine the radial and non-radial models into a single model for evaluating DMU efficiency [29].…”

“…By showing that the EBM is input-oriented (EBM I-C) for DMU 0 = (x 0 , y 0 ), we then calculate it as follows [29]:…”

“…On the other hand, a low correlation coefficient indicates a skewed input-output relationship. Pearson's correlation coefficient is a number that varies from −1 to +1 [29].…”