• Title/Summary/Keyword: Logistics Business

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A Genetic Algorithm Approach for Logistics Network Integrating Forward and Reverse Flows (역물류를 고려한 통합 물류망 구축을 위한 유전 알고리듬 해법)

  • Ko, Hyun-Jeung;Ko, Chang-Seong;Chung, Ki-Ho
    • IE interfaces
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    • v.17 no.spc
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    • pp.141-151
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    • 2004
  • As today's business environment has become more and more competitive, forward as well as backward flows of products among members belonging to a supply chain have been increased. The backward flows of products, which are common in most industries, result from increasing amount of products that are returned, recalled, or need to be repaired. Effective management for the backward flows of products has become an important issue for businesses because of opportunities for simultaneously enhancing profitability and customer satisfaction from returned products. Since third party logistics service providers (3PLs) are playing an important role in reverse logistics operations, they should perform two simultaneous logistics operations for a number of different clients who want to improve their logistics operations for both forward and reverse flows. In this case, distribution networks have been independently designed with respect to either forward or backward flows so far. This paper proposes a mixed integer programming model for the design of network integrating both forward and reverse logistics. Since the network design problem belongs to a class of NP-hard problems, we present an efficient heuristic algorithm based on genetic algorithm (GA), of which the performance is compared to the lower bound by Lagrangian relaxation. Finally, the validity of proposed algorithm is tested using numerical examples.

Model and Algorithm for Logistics Network Integrating Forward and Reverse Flows (역물류를 고려한 통합 물류망 구축에 대한 모델 및 해법에 관한 연구)

  • Ko Hyun Jeung;Ko Chang Seong;Chung Ki Ho
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2004.10a
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    • pp.375-388
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    • 2004
  • As today's business environment has become more and more competitive, forward as well as backward flows of products among members belonging to a supply chain have been increased. The backward flows of products, which are common in most industries, result from increasing amount of products that are returned, recalled, or need to be repaired. Effective management for these backward flows of products has become an important issue for businesses because of opportunities for simultaneously enhancing profitability and customer satisfaction from returned products. Since third party logistics service providers (3PLs) are playing an important role in reverse logistics operations, the 3PLs should perform two simultaneous logistics operations for a number of different clients who want to improve their logistics operations for both forward and reverse flows. In this case, distribution networks have been independently designed with respect to either forward or backward flows so far. This paper proposes a mixed integer programming model for the design of network integrating both forward and reverse logistics. Since this network design problem belongs to a class of NP-hard problems, we present an efficient heuristic based on Lagrangean relaxation and apply it to numerical examples to test the validity of proposed heuristic.

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A Decision Support System for an Optimal Transportation Network Planning in the Third Party Logistics

  • Park, Yong-Sung;Choi, Hyung-Rim;Kim, Hyun-Soo;Park, Nam-Kyu;Cho, Jae-Hyung;Gang, Moo-Hong
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • 2006.10a
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    • pp.240-257
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    • 2006
  • In an effort to gain competitiveness, recently many companies are trying to outsource their logistics activities to the logistics specialists, while concentrating on their core and strategic business area. Because of this trend, the third party logistics comes to the fore, catching people's attention, and expanding its market rapidly. Under these circumstances, the third party logistics companies are making every effort to improve their logistics services and to develop an information system in order to enhance their competitiveness. In particular, among these efforts one of the critical parts is the decision support system for effective transportation network planning. To this end, this study has developed an efficient decision support system for an optimal transportation network planning by comprehensively considering the transportation mode, routing, assignment, and schedule. As a result of this study, the new system enables the expansion of the third party logistics companies' services including the multimodal transportation, not to mention one mode of transportation, and also gets them ready to plan an international transportation network.

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Impact of Logistics Costs on Supply-Chain Flexibility Structure (물류비용을 고려한 공급사슬 유연성 구조에 관한 연구)

  • Nam, Jin Mo;Park, Kun Soo
    • Journal of the Korean Operations Research and Management Science Society
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    • v.39 no.2
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    • pp.21-35
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    • 2014
  • As productions and deliveries of multiple products to multiple marketplaces have been increasingly popular, supply chain flexibility, which refers to an ability to deal with demand and capacity uncertainty, becomes an important issue in supply chain management. However, logistics costs have been largely neglected in the literature on supply chain flexibility structure. In this paper, we propose mathematical models to investigate the impact of the logistics costs on the optimal flexibility structure. We also conduct a simulation study and observe that logistics costs have a significant impact on the decision on supply chain flexibility structure. Such conclusion is also supported by the case study of a global car manufacturer, Honda Motors.

A Study on Logistical System and Operational Models of Franchise Store Retailing in China

  • Li, Dong-xin;Kang, Tae-won
    • The Korean Journal of Franchise Management
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    • v.3 no.1
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    • pp.130-143
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    • 2012
  • Franchise store retailing is taking on ever greater roles in business and commerce in China. The diverse product range, small-batch order, high frequency and time-specific requirements inherent in retail logistics make it the most complicated of all categories of logistics. In franchise store retailing, expanding business scales make trans-regional development a trend. Without a well-functioning logistic system, the standardized delivery of products would be held back, impacting trans-regional development strategy and operational costs. Therefore, the efficiency of franchise store retailing largely depends on logistical efficiency. The integrated and streamlined management of franchise stores depends in large measure on their logistical centers. As such, logistical centers constitute the key link and bears on core competitiveness in franchise store retailing. This thesis begins with an analysis of the current developments and four basic logistical models of franchise store retailing in China, proceeds to summarize developmental trends as well as focal issues and proposes an efficiency enhancing plan.

Effects of CSR Activities on Business Performance of Logistics Firms

  • JEON, Ho-Jin;KIM, Young-Min;YOUN, Myoung-Kil
    • Journal of Distribution Science
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    • v.17 no.12
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    • pp.23-32
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    • 2019
  • Purpose As consumer awareness grows, the importance of CSR becomes even more important for long-term growth. In response to this current trend, the purpose of this study is to analyze the effect of CSR activities on business performance for logistics companies. Research design, data, and methodology - Between CSR activities and growth, there was a generally positive(+) relationships between activities such as donation and volunteerism and the growth of the enterprise. In terms of the relationship between environmental factors and growth, negative results were expressed. In case of profitability, improved welfare for workers has had a positive impact on corporate profitability. Results - With respect to stability, a high proportion of equity capital is not considered to be more active in SCR activities. Significant negative results were given between the minimum factors for entry, transportation, and noise generation factors and the ratio of liabilities, which are representative friction factors in the community. Conclusions - With respect to stability, a high proportion of equity capital is not considered to be more active in SCR activities. Significant negative results were given between the minimum factors for entry, transportation, and noise generation factors and the ratio of liabilities, which are representative friction factors in the community.

The Study on Successful Logistical Relationships in Third-Party Provider (제3자 물류기업의 성공적인 물류관계성에 관한 연구)

  • Jung, Chae Hoon;Her, Jun
    • Journal of Industrial Convergence
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    • v.5 no.1
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    • pp.103-119
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    • 2007
  • It is very important for the logistics business success that Third-Party Provider maintains a successful logistical relationship with customers. The important factors for the successful logistical relationship are customer orientation, service timeliness, reciprocal dependability, keeping long-term relationships, and logistics cost savings. Therefore, Third-Party Provider establishes the logistics strategy based on the reciprocal dependability with customers and the long-term of view. In addition, the logistics strategy provides the logistics services satisfying customers and saving logistics cost.

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Development of the Freight Forwarder Information System adopting RIA

  • Choi, Hyung-Rim;Lee, Hyun-Chul;Choe, Hong-Seok
    • 한국경영정보학회:학술대회논문집
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    • 2007.06a
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    • pp.997-1002
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    • 2007
  • In the case of international trade, the role of 3PL (third-party logistics) providers, in recent years, has drawn more attention. At the same time, computers have become faster, cheaper, and more widely available. Thus. information systems have become commonplace to freight forwarders and the increased efficiencies to be gained in improving logistics has pushed managers to explorer a number of new ideas, technologies and methods of information management and automation. However, many companies are encountering difficulties to choose an information system flexible and satisfying all needs carrying on business. In this study RIA (rich internet application) technology based on Java Swing was introduced to the .freight forwarder information systems to provide richer user interfaces and a flexible web-based application. Also considered giving stakeholders in charge of logistics especially in SMEs (Small and Medium Enterprises) cost-effective and performance-effective solutions with good accessibility of internet for smooth operations of their businesses.

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Key Indicators for the Growth of Logistics and Distribution Tech Startups in Thailand

  • Thanatchaporn JARUWANAKUL
    • Journal of Distribution Science
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    • v.21 no.2
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    • pp.35-43
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    • 2023
  • Purpose: As Thailand seeks to become a regional startup hub, Thai startups have been acquiring growth and scalability in the last ten years. Hence, this paper examines influential factors in Thailand's growth of logistics tech startups. The conceptual framework incorporates sensing user needs, sensing technological options, conceptualizing, scaling, and stretching, co-producing, and orchestrating, business strategy, strategic flexibility, and startup growth. Research design, data, and methodology: The quantitative method was applied to distribute the questionnaire to 500 managers and above in logistics tech startups in Thailand. The sampling techniques involve judgmental, convenience, and snowball samplings. Before the data collection, The Item Objective Congruence (IOC) Index and pilot test (n=45) were employed for content validity and reliability. The data were mainly analyzed by Confirmatory Factor Analysis (CFA) and Structural Equation Model (SEM). Results: The findings revealed that sensing technological options, scaling, and stretching, co-producing, and orchestrating, and business strategy significantly influence the growth of startups in Thailand. Nevertheless, sensing user needs, conceptualizing, and strategic flexibility have no significant relationship with startup growth. Conclusions: For Thailand to accelerate its digital economy driven by tech startups, firms must emphasize influential factors to accelerate growth by providing the right tech solutions for people's lives.

Practical approaches to becoming the logistics hub of Northeast Asia (동북아 물류중심국가 추진전략에 관한 연구)

  • Oh, Moon-Kap
    • Journal of Distribution Science
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    • v.11 no.6
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    • pp.31-40
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    • 2013
  • Purpose - The Northeast Asian Logistic Hub strategy was established to create a national competitive advantage in northeast Asia. Countries in this region are competing fiercely to become the central base distribution port as the volume of container shipping continues to increase due to the northeast Asian (especially Chinese) economic growth. The primary method by which shippers are improving their customer service and distribution is enhancing profits by minimizing call ports on the key route through strategic affiliations and the use of large vessels. Each nation is planning large-scale investments in the construction of sea ports that can accommodate large vessels. This paper proposes ways by which the logistical strategies of domestic corporations can keep pace with changes in government policy concerning the Northeast Asian Business Hub policy. It examines the logistics system in the Northeast Asian region, analyzes the government's Northeast Asian Business Hub policy, and suggests logistical strategies for domestic corporations through an analysis based on a questionnaire designed to grasp domestic firms' needs and goals. Research design, data and methodology - The purpose of this study is to determine how shipping companies establish partnerships with third-party logistics providers and draws out the implications of the results. The survey methods used were personal interviews and questionnaires distributed to a sample population through e-mail, fax, mail, and telephone. A total of 600 questionnaires were distributed, of which 165 were returned. Among these, ten were excluded due to insufficient content; ultimately, 155 were used for the sample. The statistical data collection process was analyzed through data coating and a statistical package program. Results - This study argues that greater flexibility in policies, administration, and systems will be needed to significantly improve established business practices. In this dissertation, we primarily identify that in order to become a center of northeast Asian logistics, Korea must adopt a new paradigm and abandon the existing systems that are based on the economic and social systems that have stemmed from bureaucracy, inflexibility, chauvinism, and equalitarianism. Flexible policies, administration, and systems will be necessary to improve business practices. Domestic corporations must establish a strategic logistics hub and related network while simultaneously pursuing value-added logistics businesses by increasing their manpower and building a logistics information system. This will strengthen their competitive edge and lead to system improvements. Conclusions - Domestic corporations must adopt a new paradigm and use more reasonable business laws, systems, and policies that are based on market-driven flexibility and transparency. Moreover, social norms and regulations should be established to help ensure political and social security. Korea must also develop a culture of tolerance for foreign companies. Finally, the paradigm defining the policy governing the development of the capital city and its satellite cities in this context must be changed.