• Title/Summary/Keyword: Logistics Cost

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Optimization for Transportation Routing on Logistics Network by Simulation Analysis (시뮬레이션 분석을 통한 물류거점체계하의 수배송 최적화 연구)

  • Kim, Young-Chul;Seong, Haeng-Ki;Hwang, Dae-Sung;Kim, Jung-Hyun;Lee, Hae-Uk;Kang, Kyung-Sik
    • Journal of the Korea Safety Management & Science
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    • v.14 no.4
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    • pp.177-184
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    • 2012
  • Logistics cost of domestic company has been improved continuously and annually, it is still higher than other main comparative countries. So, in this study, as optimizing the logistic network of distribution, it was trying to find methods decreasing logistics cost and storage cost, which occupies 86% of logistics cost of companies. through the efficiency of transportation and delivery routing, it could be also possible to decrease the logistics cost. And, it is also checked to find the logistics cost could be decreased by 10% by optimizing the routes of transportation and delivery, improving the transportation mode, etc.

Study on the Effect of Product Line Pricing on Loading Efficiency and Logistics Cost (상품라인별 가격결정이 적재효율 및 물류비에 미치는 영향에 관한 연구)

  • Jung, Sung-Tae;Yoon, Nam-Soo;Han, Kyu-Chul
    • Journal of Distribution Science
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    • v.12 no.8
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    • pp.55-69
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    • 2014
  • Purpose - Despite the importance of price, many companies do not implement pricing policies smoothly, because typical price management strategies insufficiently consider logistics efficiency and an increase in logistics costs due to logistics waste. This study attempts to examine the effect of product line pricing, which corresponds to product mix pricing, on logistics efficiency in the case of manufacturer A, and analyzes how logistics performance changes in response to these variables. Research design, data, and methodology - This study, based on the case of manufacturer A, involved research through understanding the current status, analyses, and then proposing improvement measures. Among all the products of manufacturer A, product group B was selected as the research object, and its distribution channel and line pricing were examined. As a result of simulation, for products with low loading efficiency, improvement measures such as changing the number of bags in the box were suggested, and a quantitative analysis was conducted on how these measures influence logistics costs. The TOPS program was used for the Pallet loading efficiency simulation tool in this study. To prevent products from protruding out of the pallet, the maximum measurement was set as 0.0mm, and loading efficiency was based on the pallet area, and not volume. In other words, its size (length x width) was focused upon, following the purpose of this study and, then, the results were obtained. Results - As a result of the loading efficiency simulation, when the number of bags in the box was changed for 36 products with low average loading efficiency of 73.7%, as shown in

    , loading efficiency improved to 89.9%. Further, from calculating logistics cost based on the cost calculation standard of manufacturer A, the amount of annual logistics cost reduction amounted to 101,458,084 KRW. Given that the sum of the logistics cost of the product group B of manufacturing enterprises A is 400,340,850 KRW, it can be reduced by 25%, to 298,882,766 KRW. Although many methods improve loading efficiency, this study proved that logistics cost could be reduced by changing the number of bags within boxes. If this measure is applied to other items, visible logistics cost reduction effects will be realized through improvements in loading efficiency. Conclusions - Future pricing policies should consider their correlation with quality, loading efficiency, product specifications, and logistics standardization to prevent logistics waste, enabling management to improve earnings for companies. Thus, when companies decide pricing policies for new products, the aspects of merchandising and marketing should take priority; however, the aspect of logistics also needs to be considered as significant. Measures revealed by the study results are not only the responsibilities of manufacturing enterprises. Pricing policy agreements between manufacturing enterprises and distribution companies, and logistics factors related to price determination should be considered; further, governments should also support them for their collaborations. This will enable consumers to purchase quality products with low prices.

  • Study on Logistics Cost Accounting in University Libraries (대학도서관의 물류비 산정에 관한 연구)

    • Ham Sung-Hun
      • Journal of Korean Library and Information Science Society
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      • v.30 no.2
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      • pp.77-92
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      • 1999
    • This study introduces a new method for Logistics Cost Accounting in University Libraries. Logistics Cost is the cost that arises in the course of physical distribution and causes a serious in crease in the unit cost of a product. Therefore, Logistics Cost Accounting has been used in manufacturing industries to reduce the unit costs of products. There is a definite similarity between the operations of a business and a library. The operations of a business consist of purchasing, production, selling, which is similar to that of a library, where they are called acquisitions, cataloging, physical preparations and circulation. So Logistics Cost Accounting may be applied to a library. With this in mind, we made a model for Logistics Cost Accounting' in University Libraries. Therefore, it can be applied to many university libraries because it is a general model.

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    A Study on the Cost Estimation Model in the military logistics- Focus on the military clothing (국방 물류비용 추정 모델에 관한 연구 - 육군 피복류 중심으로 -)

    • Park, Jin-Woo;Kang, Sung-Jin
      • Journal of the military operations research society of Korea
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      • v.32 no.2
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      • pp.1-20
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      • 2006
    • In modern marketing environment, we are more interested in logistics as industrial structure is complicated and globalized. Most companies focus on reducing the cost price. So a lot of companies study on cost estimation logistics. However, it Is very difficult to estimate the cost of logistics. Thus they mainly use linear method such as the simple distance of transportation. This study defines the cost of logistics, structure & network of military logistics and proposes the costing estimation model in the logistics. We apply to battle shoes which are the main clothing in the military. In the result, we found some differences on the rate of cost structure between military and civil companies. This study can be used directly to the decision making for optimal military logistics alternatives and contribute to the efficient operation of military budget.

    A Study on Logistics Standardization Strategy of South and North Korea (남북한 물류표준화 방안에 관한 연구)

    • 고현우;유정상
      • Journal of Korean Society of Industrial and Systems Engineering
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      • v.24 no.69
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      • pp.121-132
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      • 2001
    • South and North Korea have many questions pending .Inter-Korea trade is the best actual problem among question pending. The biggest problem of inter-Korea trade in logistics cost. The logistics cost of inter-Korea is the highest position in the middle of foreign trade. We present that the cost reduction is possible by inter-Korea logistics standardization. This paper also shows logistics standardization strategy of South and North Korea.

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    A Study on the Improvement of Korean Logistics Policies (우리나라 물류비 절감을 위한 물류정책의 효율성 제고방안에 관한 연구)

    • Park, Kwang-So;Yu, Kwang-Hyun
      • THE INTERNATIONAL COMMERCE & LAW REVIEW
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      • v.45
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      • pp.139-163
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      • 2010
    • Companies make a great effort for saving costs because a rise in logistics costs weaken trade companies competitive position in the international market. Therefore it is important for companies and government to enhance logistics competitive. This article focus on the logistics laws and policies to improvement companies competitiveness and save logistics costs. It has researched from the point of view rather government basis than company basis. Korean Logistics policies have some fundamental problems that the law and policies are spreaded to several administrations such as, Ministry of Knowledge Economy, Ministry of Land, Transport and Maritime Affairs etc. We propose the solutions as follows; First of all, we review the laws and policies on logistics and point out the problems. Second, setting up the principle of Korean Logistics Policies according to the changes in international logistics paradigm and circumstances. Third, adjustment of systems and tasks of administrations related to logistics. Fourth, innovation plan for logistics policies. The plan can carry out two ways demonstration business and diffusion business in order.

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    Activation of Korean Certification System of Total Logistics Provider for the Strength of Logistics Service Industry (물류서비스산업 경쟁력 강화를 위한 종합물류업자 인증제도의 활성화 방안)

    • Choe, Seok-Beom
      • Journal of Korea Port Economic Association
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      • v.21 no.4
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      • pp.209-237
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      • 2005
    • To gain a national competitive advantage in Northeast Asia, Northeast Asia logistics hub strategy was undertaken by Korean Government. Korean Government had published Northeast Asian Logistics Hub Roadmap including the upbringing of total logistics providers to solve the high logistics cost which weakens the competitive advantage of Korean companies. To solve the high logistics cost, the Government had revised the Korean Physical Distribution Promotion Law for the introduction of certification system of the total logistics provider and enacted the Rules on the Certification of Total Logistics Provider and is going to introduce the certification system of total logistics provider. In this certification system, third party logistics related point is very high, the success in this certification system depends on the strategic alliances of the small and medium size logistics companies. The purpose of this paper is to study certification system of the total logistics provider and contribute to gain the competitive advantage of total logistics provider as global logistics provider.

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    Deciding of the Priority Elements for Choosing Third-Party Logistics Provider in International Logistics (국제물류분야의 제3자 물류업체 선정을 위한 우선순위 요소 결정)

    • Ha, Chang-Seung
      • Journal of Fisheries and Marine Sciences Education
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      • v.25 no.5
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      • pp.1214-1223
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      • 2013
    • The purpose of this work is to analyze the factors, criteria and importance that shippers in the international logistics industry take into account in choosing third-party logistics, and thereby to propose the directions of the areas and functions that third-party logistics will need to enhance on the basis of Analytic Hierarchy Process (AHP) methodology. To do that, this work collected and analyzed materials about changing environments of logistic industry and previous studies, and especially conducted a questionnaire survey on the factors to choose third-party logistics with the study subjects of shippers in the international logistics industry. To draw attribute factors, this work repeatedly chose and classified candidate factors through Delphi technique on the basis of the data of previous studies. The analysis results are presented as follows: regarding pairwise comparison between logistic cost and logistic service in relation of conflict, logistic service was recognized to be more important than logistic cost; regarding pairwise comparison between corporate capability and logistic cost, logistic cost was recognized to be more important; and regarding comprehensive evaluation, logistic service factors, including accuracy of order handling, service reliability, freight damage and compensation, a degree of fulfillment of promise, quality of transportation, and problem-solving ability, were found to be in high position.

    A Study on Modal Shift effect - Focused on O/D between Busan-Gyeonggi Area -

    • Kang, Dal-Won;An, Young-Mo;Nam, Ki-Chan;Kwak, Kyu-Seok
      • Journal of Navigation and Port Research
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      • v.35 no.9
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      • pp.777-783
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      • 2011
    • Interest about Modal Shift is not being decreased, and it is drawing limelight as green logistics which meets low carbon green growth of National development vision. As an effect of Modal Shift, not only reduction in CO2 emission but also reduction in social cost, logistics cost etc. are being discussed. However, until now research about its practical transformation effect has been scanty. In this study, the actual expenses via CO2 emission, social cost, and logistics cost etc. by road transportation and rail transportation of container cargo with Origin/Destination between Busan-Kyeonggi Area were calculated and we propose beneficial effects when transportation mode is transformed from road to rail with Scenario Planning.

    A Study on the Reduction of Logistics Cost in the Paper Industry Using PPS (PPS도입에 의한 "제지업계" 물류비 절감에 대한 연구)

    • 안종윤;강경식
      • Journal of the Korea Safety Management & Science
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      • v.5 no.1
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      • pp.57-67
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      • 2003
    • The logistics cost in Korea is very higher than that of the other countries. Thus, we propose to the way to reduce company's logistics cost in the paper industry. Each company in the paper industry is having its particular sized pallets and using them to manufactured products, store, deliver, retrieve empty pallet and so on. In this reason, the logistics cost is still increasing. As the common introduction of Pallet Pool System to "Paper Industry", the logistics cost could be reduced up to 24% and 1.8 billion won saved approximately, and it possibly attributes to the increase of company profit and the strength of the company competitiveness.itiveness.