Research on Logistics Network Infrastructure Based on HCA and DEA-PCA Approach

Logistics Network Infrastructure (LNI) is an important area of Logistics Infrastructure Capability (LIC). The connotation of LNI is analyzed in this paper. Compared with the extensive research on LNI in developed world, empirical work is still rare in China. In this paper the theory of LNI is firstly overviewed. Then a new evaluation index system for LNI evaluation is set up which contains factors that reflect economic development level, transportation accessibility and turnover volume of freight traffic. Thirdly, an empirical study is carried out by using Hierarchical Cluster Analysis (HCA), Data Envelopment Analysis (DEA) and Principal Component Analysis (PCA) approach to classify LNI into 4 clusters for 25 cities in Yangtze River Delta Region of China. Fourthly, according to the characteristics of the 4 clusters, suggestions are proposed for improving their LNI. Finally, after comparing different LNI of 25 cities in Yangtze River Delta Region of China, this paper focuses on that different LNI including Hub, Central Distribution Center & Cross Docking Center, Regional Distribution Center or Distribution Center should be build reasonably in order to meet the customer's requirement in the 4 different cluster cities.