World Review of Intermodal Transportation Research (12 papers in press)
Fair Comparison of Developing Software in Different Locations: Dynamic Decision Model
by Darja Smite, Emil Numminen
Abstract: While offshore software development is frequently looked at in simple economic terms, assumed benefits are not always achieved. This can be attributed to unexpectedly high transition costs and a number of extra costs for maintaining a sourcing strategy. When offshoring fails, companies need to revisit their decision. In this paper, an analytical model is proposed to support evaluation of offshoring strategies and decision options. The model focuses on value comparison, and treats outcomes of offshoring relationships more fairly and realistically than a na
Keywords: Offshoring decisions; Cost calculation; Transaction cost economics; Opportunity costs; Options; Cost/benefits; Software development.
Innovation in container shipping organizations: Impact of intra- and inter-organizational connectedness
by Ceren Altuntaş Vural
Abstract: This article discusses the impacts of customer involvement, supplier involvement, employee involvement and multi-functional collaboration on the innovativeness of container shipping companies. It also considers the relationship between innovativeness and its impacts on business performance. The results of the structural equation modelling analysis used to explain these relationships indicate that container shipping companies rely on internal resources for business service innovation, while neither customer nor supplier involvement have any influence on their innovativeness. This suggests further analysis is needed concerning stakeholder inputs and innovation types with respect to different business-to-business services considering that it has positive impacts on both the financial and customer service performance of container shipping companies. With reference to these findings, managers might want to consider interdependencies between different stakeholders in collaborative innovation. Involving customers by using sales or marketing professionals as mediums might yield to better results in terms of effective customer involvement.
Keywords: Customer involvement; Supplier involvement; Employee involvement; New service development.
Assumptions for inventory modeling: Insights from practice
by Lauri Lattila, Samuli Kortelainen, Per Hilletofth
Abstract: Many different types of models have been developed to analyze multi-echelon supply chains. These models tend to rely on certain assumptions which might be too restrictive to be used in practical applications. In this paper we present a decision support system developed for a manufacturing company to aid decision making in both manufacturing and distribution strategy. The model is based on the assumptions of the decision-makers instead of relying on a pre-existing model architecture, which guarantees that the assumptions made are not too restrictive for practical use. The decision support system is based on agent-based modeling. The model was done in close co-operation with the personnel from the case company, and emphasis was based on how the company can use the model in decision making without requiring any special expertise in developing the supply chain alternatives. The case company expected the model to be able to utilize stochastic demand, which is not based on normal distribution. Warehouses also need the possibility to work in dual-roles and distribution needs to cover nonlinear transportation costs due to economics of scale. Due to rescheduling and dynamic capacity management, it is difficult to estimate actual production lead times for production orders. By using agent-based modeling we were able to take the central assumptions into account and create a decision support system, which the supply chain manager can use to evaluate various supply chain alternatives.
Keywords: Inventory management; Inventory modeling; Simulation; Decision support.
Quality of Multimodal Freight Transportation: A Systematic Literature review
by Aman Dua, Deepankar Sinha
Abstract: Firms, especially in global trade have been experiencing movement of goods and products through different modes of transportation interfacing at different nodes (or terminals). Yet the major focus has been on the sea or air leg of transportation. Efforts are made to reduce cost and time, but there are other dimensions of multimodal transportation as well. The research in area of multimodal transportation is in na
Keywords: Multimodal Transportation;Intermodal Transportation;Quality of Transportation Supply Chain Management; Transportation Review.
Synergies and conflicts between Marketing and Supply chain management key performance indicators
by Juliana Costa Dias De Moraes, Ederson Luiz Piato, Marcio Pimenta
Abstract: The integration between Marketing and Supply Chain Management (SCM) can be compromised by cross-functional aspects and lead to conflict and lack of cooperation, thus hindering organizational goals. This study aims to analyze the factors that present synergies and conflicts between Marketing and SCM key performance indicators (KPIs), as well as their measurements and applications. An in-depth case study was conducted in a multinational supplier of automotive parts. It analyzes the perspectives of four functions: Customer Service, SCM, sales and production regarding their organizational KPIs. The results show elements of conflict between the analyzed KPIs, for which adjustments are proposed to make them more focused and integrated with the organizational objectives. Points of mutual and conflicting interests were found between the analyzed KPIs, especially in indicators composed by factors related to: deadlines, manufacturing capabilities, costs, flexibility to meet volatile demand, and promotions.
Keywords: Marketing; Sales; Demand Chain Management; Supply Chain Management; Key Performance Indicator.
A Framework of Management Tools for Cooperation in Distribution Networks
by Jorge Verschoore, Theo Storck
Abstract: Business networks have emerged as a strategic model that assigns excellence and competitiveness. Despite its popularity, literature indicates the management of network cooperation as a knowledge gap. The main objective of this paper is to propose a framework of management tools for cooperation in distribution networks. To do so, four management tools were considered: contractual, strategic, decision and integration tools. This is a qualitative research based on a case study of a multinational company belonging to an American industrial group. We made semi-structured interviews and a focus group with members of the company and its sales representatives. Backed on academic literature and empirical data, we present the main elements of the four tools in the context of distribution networks and organize them into a framework to support management decisions. Our results are linked to this specific case in a particular context that allows an in-depth study but not the enlargement of the empirical field. Future studies could aim at other business networks and address additional management tools.
Keywords: Business networks; distribution networks; network management; cooperation; network cooperation; framework; case study; focus group; management tools; dealers.
Strengthening innovative supply chain in the Public Transportation System of Curitiba through the Relational Capabilities
by Fernanda Salvador Alves, Ananda Silva Singh, Eduardo De-Carli, Luiz Aurelio Virtuoso, Thalita Anny Estefanuto Orsiolli, Andrea Paula Segatto
Abstract: This paper aims to characterize the relational capabilities present in the supply chain (SC) for 100% based on soybean oil biofuel usage, in the Public Transportation System (PTS) of Curitiba. Supply chain and relational capabilities constructs are used as theoretical foundation and a unique case study comprising the total chain of the biodiesel usage in the PTS was conducted. Data were collected from non-structured interviews with members of the upstream of the supply chain and were analysed under the perspective of each dimension and/or components of relational capabilities identified in the case. Empirical evidence from the total analysed supply chain contributes to the literature by analysing this issue from the perspective of relational capacities. The need for partners of an SC to coordinate activities, development of synergy amongst them and usage of knowledge and skills from previous experiences, demanding a joint learning consists in practical implications of this study.
Keywords: Supply chain management; Relational Capabilities; Biodiesel.
Evaluating Engineered Networks: The Effects of Structure and Process on the Outcome of the Brazilian Small-Firm Networks
by Ingridi Bortolaso, Jorge Renato Verschoore, Eduardo Henrique Rigoni
Abstract: This paper focuses on the evaluation of engineered networks created and supported by a public policy, namely Cooperation Networks Program (CNP), guided by the Government of Rio Grande do Sul State, in Brazil. Since the year 2000, the CNP fostered the establishment of more than 200 SFNs in the region, turning this State into the main empirical field of studies on interorganizational networks in Brazil. This context raises questions regarding the SFNs genesis and its consequences. The paper, thus, seeks to answer the following question: can it be affirmed that Structure and Process influence the Brazilian engineered SFNs Outcome? To do so, a quantitative research was conducted with the CNP networks based on the categories Structure, Process, and Outcome. The results indicate that through an adequate network evaluation, it is possible to measure and compare results, besides facilitate intervention decisions for course corrections and obtain the targeted collective gains.
Keywords: evaluation; cooperation networks; management; government program; interorganizational; engineered; small business networks.
Travel Time Variability Analysis Based on Level of Service: A Case Study of Mixed Traffic Urban Arterial Corridors
by Krishna Saw, Gaurang Joshi, Bhimaji Katti
Abstract: Since the Indian urban traffic is characterized by heterogeneity with the dominance of two-wheelers (2Ws), three-wheelers (3Ws) and precarious traffic impedance, travel time is often highly unstable and varies significantly which entails additional cost due to delays. Travel time variation not only leads to wasting of productive time but also increase the stress level of the commuters. In addition, variable travel time leads to the reduction in satisfaction level which influences commuters travel decision such as route and departure choice etc. With this in the background, an attempt has been made to study the travel time variability of urban arterial corridors focusing on Level of Service (LoS) as the criteria for reference of travel time. The study probes into various attributes of traffic, composition, road side friction and intersection for their impact on travel time by employing Multiple- Linear Regression (MLR) Technique. The proposed Travel Time Variability Index (TTVI) based on LoS speed suggested as better reliability indicator against Buffer Time Index (BTI) or Planning Time Index (PTI).
Keywords: Travel Time Variation; Recurring Attributes; Level of Service; Travel Time Variability Index.
Analysis of freight mode choice decisions of shippers and forwarders; pre-liberalisation survey
by Hulya Zeybek
Abstract: Liberalisation of rail markets has been in progress in the EU since the beginning of 2007. This allows any licensed EU incumbent or non-incumbent railway company with the necessary safety certification to apply for capacity and offer freight services by rail throughout the EU. The experiences of the liberalized rail markets demonstrate that the majority of the new rail freight services providing companies have drawn customers from incumbents and very few companies have been successful in attracting new ones. Thus, unleashing competition by opening the market requires the incumbents to understand customers' mode and carrier choice behaviour as a first step, if they are to avoid dramatic and rapid losses of market share. This study provides an assessment of the influences on the transport mode choice of shippers and forwarders highlighting the important factors driving freight mode choice before the rail market liberalisation. The analysis is based on the findings of the survey conducted by interviewing shippers and forwarders. The results of the research revealed that cost is the main factor in determining the modal choice of both shippers and forwarders demonstrating that they are price sensitive in transport service procurement.
Keywords: mode choice; rail freight; pre-liberalisation; Turkey.
Power Plant Allocation Using Transportation model and Economic Dispatch Considering Emissions
by Wahyuda , Budi Santosa, Ahmad Rusdiansyah
Abstract: This paper proposes a hybrid of Transportation and Economic Dispatch (TED) model to perform a joint optimization of both production and transmission of the power plant. By this model, we aim to reduce the total cost of power allocation. The model is applied to solve a problem of electricity allocation in East Kalimantan, Indonesia. The main problems of electricity in East Kalimantan are the power outages, high prices, and high emission despite the abundance of gas and coal. The proposed model attempts to reduce these problems altogether. Four scenarios are applied to find the best possible solution. The scenarios are using power generated by 1) the State Electricity Company (SEC), 2) the SEC and the Independent Power Producer (IPP), 3) the SEC and a rental power plant (Rent), and 4) the SEC and a private company (PC). The experiments show that using power generated by SEC + IPP produces the cheapest fuel cost and minimum outages. While SEC + Rent produces the smallest emissions and outages. There is no scenario that can reduce outages, prices, and emissions simultaneously
Keywords: power plant allocation; economic dispatch; transportation model; single echelon; electricity.
Special Issue on: Supply Chain Relocation Studies from a Brazilian Perspective
Minimum-cost flow algorithms: a performance evaluation using the Brazilian road network
by Carolina Luísa Dos Santos Vieira, Mônica Maria Mendes Luna, Jovane Medina Azevedo
Abstract: In this paper, we evaluate the practical performance of four algorithms for solving the minimum-cost flow problem on road networks. While most computational testing has been based on artificially generated networks, for this study we used 215 real-world test instances, solved over the Brazilian road network. We verified that, differently from the literature, Network Simplex was the best performing algorithm in practice for this context, both in terms of speed and robustness. Features such as the number of supply and demand nodes influenced runtime, besides network topology and spatial syntax. On the other hand, the supplied volume and the ratio of supply/demand nodes were not good performance predictors. Our evaluation also showed that efficiency may be tied to algorithmic structure. The results should be particularly useful to support a choice of a MCF algorithm for evaluation of transportation networks, allowing to reduce the cost of processing analyses of flow allocation. In view of limited economical resources available to developing economies, the definition of investment priorities in infrastructure should be supported by proper methods.
Keywords: minimum-cost flow; experimental study; Brazilian road network; algorithms performance; network simplex.