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.
Bilateral connectivity in the liner shipping network: an overview
by Iñigo L. Ansorena
Abstract: A general picture of the global shipping network is presented. The maritime network connects countries (nodes) with regular liner services (edges) all around the world. The weight factor of connections is the liner shipping bilateral connectivity index (LSBCI). The LSBCI is a composite index developed by UNCTAD which reflects maritime connectivity between pairs of nations all around the globe. The first goal of the study is to determine the community structure of the network by means of modularity optimisation. The structure clearly shows the main sea routes within the global network. The second goal is to extract more information from the strongest community by means of centrality metrics. The countries which achieved the best performance in the past decade are revealed.
Keywords: liner shipping; centrality metrics; modularity optimisation; connectivity; communities; complex network.
Exploring causality between economic growth and air transport demand for Argentina and Uruguay
by Juan Gabriel Brida, Pablo Daniel Monterubbianesi, Sandra Zapata-Aguirre
Abstract: This paper investigates the effects in the long-term between air transportation and the economic growth in Uruguay and Argentina. Employing annual data from 1970 to 2011, the study uses cointegration analysis to consider the existence of a long-run relation between real GDP and the number of air passengers in each country. Results show that for both considered countries, the series are cointegrated and it is possible to estimate an error correction model (ECM). The Granger causality test shows that causality goes unidirectionally from GDP to air-transport for both countries. The elasticity and impulse-response function analysis shows that the effect of a GDP shock on the number of passengers is higher in Uruguay than in Argentina, which is consistent with the characteristics of the air market and the geographical conditions of each country. The results suggest different policy and planning implications.
Keywords: economic growth; air transport; cointegration; Granger causality; Argentina; Uruguay; passengers; impulse-response; shock; error correction; long-run.
Evaluation of a novel logistics solution for roundwood import
by Ekku Heljanko, Olli-Pekka Hilmola, Andres Tolli
Abstract: Investment analysis on a logistics concept for timber transportation in South-Eastern Finland is presented. Concept utilises longer freight train units, efficient terminal operations and multimodality based on high-capacity transport (HCT) trucks. This is compared to a current state of shorter direct train transportation to factories. Primary interest is on Russian birch wood import (used in pulp manufacturing). Analysis reveals that the modelled logistics concept is feasible. Taking the time-value of money into account, in the long-term this alternative method has lower overall costs compared to the current one. Possibility for intermodal container backhauling provides potential for synergy benefits. Synergies could also be accessed from the joint use of terminal by number of near-by factories. Although investment seems to be profitable, sensitivity analysis on the most crucial parameters should draw attention. Different factors should be analysed further with advanced simulation tools such as illustrated using Vensim and Forio simulate.
Keywords: wood transports; railways; road; terminal; investment appraisal; simulation.
A conceptual life cycle-based sustainability framework for assessing transportation vehicles
by Lambros K. Mitropoulos, Panos D. Prevedouros
Abstract: Life cycle assessment has been used extensively in the transportation sector to determine impacts of transportation infrastructure and other components; however, the majority of these studies focus on environmental life cycle impacts. This study presents applications of the life cycle assessment method in transportation and develops a sustainability framework that incorporates life cycle impacts for assessing urban transportation vehicles. The framework uses five sustainability dimensions, a set of 32 sustainability indicators, 14 midpoint impacts, seven endpoint impacts and three sustainability indices for the assessment of different technologies of urban transportation vehicles. The framework aims to enhance decision making by aggregating data, which are used to quantify multiple indicators, into a different form of indices representing environment, technology performance, energy, economy and user-based impacts.
Keywords: framework; life cycle assessment; LCA; indicators; transportation; alternative fuels; vehicle technologies; sustainability indices.
Exploring opportunities for moral disengagement in codes of conduct from the textile industry
by David Eriksson, Per Hilletofth, Göran Svensson, Lars Bengtsson
Abstract: The purpose of this research is to assess how codes of conducts are outlined and formulated in relation to moral disengagement along the supply chain. The research is focused on the idea that supply chain structure may reduce the actors' sense of moral responsibility for the actions and impacts of the supply chain on workers and environment. The research has been conducted as a case study including Swedish firms in the textile industry. The research has used secondary data from codes of conducts. The findings show that codes of conduct do not cover all supply chain practices linked with moral disengagement. This does not cause immoral behaviour as such, but might cause moral disengagement. Supply chain research needs to focus on what should be included in codes of conduct and other ethical guidelines, so as to reduce the risk of immoral behaviour. In order to reduce the likelihood for moral disengagement, there are several supply chain practices that should be included in codes of conduct, such as power asymmetry, managerial support, and incentives.
Keywords: business ethics; corporate social responsibility; CSR; governance; manufacturing; multinational companies; qualitative research.
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.