A Performance Evaluation Model for the Logistics Service Companies of the Ministry of Oil Using an Integrated Approach of Data Envelopment Analysis and the Markowitz Method

Abstract

The oil industry is one of the most influential and largest industries in the country, which in recent years has been significantly affected by the unjust U.S. sanctions. Therefore, the performance of the companies operating in this sector is of great importance. The logistics companies active in the industry play a supporting role, and their weak performance can cause substantial damage to the national economy. Hence, it is essential that they are continuously evaluated. This study was conducted with the aim of evaluating the performance of the logistics companies operating in the oil industry. In this research, to evaluate the performance of logistics companies in the oil industry, performance evaluation indicators were identified by reviewing the literature and consulting with experts and professionals. Subsequently, a two-stage network data envelopment analysis approach was employed to measure the performance of these companies. The results showed that the average efficiency in 2020 was 80% in the first stage, 74% in the second stage, and 60% in total efficiency. In that year, units four and six were on the efficiency frontier with the highest efficiency, while unit eighteen had the lowest efficiency at 28%. In 2021, the average efficiency was 79% in the first stage, 85% in the second stage, and 68% in total. In this year, units four and eight were on the efficiency frontier with the highest efficiency, and unit twelve had the lowest efficiency at 50%. A comparison of efficiency across the two years indicates that total efficiency increased by 22%. Furthermore, this study, by employing an integrated approach of data envelopment analysis and the Markowitz model, aimed to simultaneously maximize returns, minimize risk, and maximize efficiency.