These are encouraged through feedback (usually using onboard technology), training or incentives.

Decisions related to outsourcing bring greater flexibility, lower investment risk, improved cash flow, and lower potential labor costs. If the data on costs are lacking, recourse must be taken to estimating the unknown cost elements as parameters in the models.

at O/D level. Processing data into information is a very basic function of the information system. The usual objective of such decision problems is minimizing total system costs, but some businesses, particularly those in public sectors, consider maximizing the service level or even balancing both objectives. A small number of studies have examined this group of travelers’ potentials for behavior change. SCM Supply Chain Management Definitions & Terms, the database and its associated manipulations. The nature of the inputs, the amount of vendors a firm uses to obtain the supplies needed to operate, and the FG and FTG the establishment creates are essentially determined by the type of industrial activity and size of the establishment. Copyright © 2020 Elsevier B.V. or its licensors or contributors. Typically, the origins i will represent production locations, and destinations j the locations where these goods are consumed. For example, Figure 6.7 shows a pulp refining plant model, in which the four pulp storage tanks are connected in series (single-path process) and transfer of pulp between them is restricted. The researchers found that the feedback helped reduce fuel consumption, and that some effect could also be achieved by simply informing pilots that their efficiency was being tracked (without feedback). We will, however, briefly describe this option, as it is a straightforward and elegant way to treat the problem. (2001).

When appealing to individuals within organizations, program implementers should be aware that individuals within groups make different decisions than they might on their own. Logistics information systems are a subset of the firm’s total information system, and it is directed to the particular problems of logistics decision making. Truck drivers (n=4) who underwent training in and out of the classroom on large double-trailer tanker trucks were able to reduce their fuel consumption by 24%–27%, when it was measured on a circuit up to 12 weeks later (Symmons and Rose, 2009). Aggregating networks will also lead to loss of information from the perspective of interdependence between networks at the firm level. Christopher [8] has defined three elements for the perfect order: on time, in full, and error free. These decisions are critical because the largest part of invested capital belongs to them. Centralizing or distributing the information, the technology used for such system, integration of the information flow (such as the use of enterprise resource planning, or ERP, systems), standardization of hardware, software, development environment, vendors, and the role of e-commerce are some of most important decisions made in this category [8].
One program found that bus drivers offered a monetary reward for driving efficiently decreased their fuel consumption by 10% (which lasted over time), and this reduction covered more than the cost of the monetary incentive (Lai, 2015). Data analysis is the most sophisticated and newest use made of the information system. Supply chain planning and operations appear as a research opportunity, where production planning, inventory management and logistics decisions should be considered simultaneously. For example, the product attributes value density and packaging density determine the number and location of warehouses, through inventory and handling costs. The focus is on the development which has seen the transition of logistics from being perceived in a purely functional way to the modern view of management-oriented, holistic supply chain management. The outputs in LIS cab are grouped in three types: reports, prepared documents, and results of data analysis from mathematical and statistical models. Group decision-making biases may also play a role in organizations’ transportation choices. Multiscale Modeling - at the strategic level, optimal design and planning of supply chains is a well-known problem that, however, continuously faces new challenges. FTA of establishments in the wholesale trade industry.

Also, clerks who receive customer feedback are valuable sources of such data. Measuring and selling the value of logistics. However, after the solution has been determined, a simulation of complete model is advisable to ensure the feasibility of the schedule. At the aggregate level we will have to assume that decisions are made in a similar way for entire regions or region pairs – possibly disaggregated, however, by company type or size, or even product type or shipment size – but not by individual firms, let alone interdependent firms. Customer service is the first and foremost class of logistics strategic decisions. Typical data from the customers are customer locations, their demands, weight and value of demanded items, date of order and date of shipping, shipment size, packaging, transportation mode, and so on. In contrast, decisions on vertical integration (also known as insourcing) have higher control over inputs, higher visibility over the process, and so on. The second will lead to problematic elasticities as the assumption will be made that warehouse-related trips will respond in the same way to economic changes as production or consumption-related trips.

Small shipment size networks serve the feeder function for the large shipment size networks: change from one network type to another happens at the distribution facilities. Demand forecasting, inventory control, freight-bill preparation, shipment scheduling, and cost-report preparation are just a few of the daily, weekly, or monthly logistics management activities. Listen to signals of market demand and plan accordingly. Bloomberg, D. J., Lemay, S., & Hanna, J. The remainder of this contribution explains the major elements of the optimisation model and their relation to the structural elements of the core model (section 2), a brief description of the solution approach including aspects concerning the overall architecture of the realised software environment (section 3) and the discussion of the results obtained for a benchmark example (section 4). For example, managers’ personal values can drive corporate sustainability initiatives (Hemingway and Maclagan, 2004), and hyperbolic discounting of future benefits prevents shipping companies from investing in transportation efficiency measures (Guerrero, 2014), just as it prevents individuals from acting on climate change (McDonald et al., 2015). Competitive strategies help an organization understand its competitors and the market in which it competes, so it can audit them and find existing gaps and opportunities available to close gaps in customer requirements. Figure 4.6. © 2020 NC State University. For example, and as mentioned above, the optimization of energy consumption is a constant industrial need, which should be explored not only with an economic objective but also with an environmental concern.

The development of life-cycle models is gaining increasing importance, since they reduce the effort to build and maintain different models for every stage of a life-cycle (Vankatasubramanian et al., 2001). The parameter r can be replaced by an exponential function of transport costs, if a discrete choice framework for aggregate agent is used as an underlying theoretical basis for deriving the gravity model.

Location problems are classified based on the following criteria [6]: Time horizon (single period vs. multiperiod), Facility typology (single type vs. multitype), Material flow (single commodity vs. multicommodity), Interaction among facilities (with interactions vs. without interactions), Dominant material flow (single echelon vs. multi-echelon), Demand divisibility (divisible vs. indivisible), Influence of transportation on location decisions (location problems vs. location-routing problems), Retail location (with competition vs. without competition). Figure 4.7. In this context, not only centralized supply chain decisions, as commonly treated by the academic community, should be considered but rather trade-offs between different supply chain entities need to be accounted for, where decentralized decisions may be at stake (Sahay and Ierapetritou, 2014). Uncertainty, Risk, Resilience Modeling – uncertainty has been explored mainly using stochastic and robust approaches. THE ROLE OF LOGISTICS' INFORMATION AND COMMUNICATION TECHNOLOGIES IN PROMOTING COMPETITIVE ADVANTAGES OF THE FIRM

With risk comes the need of guaranteeing supply chain resilience (Cardoso et al., 2015), a characteristics critical to supply chains due to the uncertain environment under which they operate.

A single truck driver, bus driver, boat captain, or airplane pilot produces more emissions through his or her professional transportation work than individual commuters do. Vertical integration decisions include the nature of the integration, its direction (downward toward customers or upward toward suppliers), and its extent (which activities, parts, or components should be included). Mike Barker BSc (ElecEng), ... Steve Mackay FIE (Aust), CPEng, BSc (ElecEng), BSc (Hons), MBA, Gov. Not affiliated transport costs or distance than the underlying firm level patterns. Scheduling activity must be performed in real time, i.e. Aggregate statistics of freight transport typically do not include characteristics of logistics operations. © Springer International Publishing Switzerland 2013, Significance of logistics in the context of general business administration, Classification and differentiation of logistics in the economic process, The logistical system of performance with its components and key activities, Agents and key elements of logistics in the national economic context, Distinction between the terms procurement logistics, production logistics, and distribution logistics, and their basic decision fields, Delivery policy as the basis for cost and price calculation, https://doi.org/10.1007/978-3-319-01769-3_2.


This has been studied by some authors (Yue and You, 2016; Lima et al., 2018) and constitutes an emerging research area. Therefore, logistics network (or, in some references, logistics channel) design is divided into two groups: the physical facility (PF) network and the communication and information (C&I) network [9].

If we wish to describe and analyse all inventory structures in a whole city, region, state or continent, the micro approach described above will become difficult to apply.

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