Title: AISLE: analytical integrated software for a logistics environment

Authors: Gary P. Moynihan, Nandagopal Padmanabhan

Addresses: Department of Industrial Engineering, The University of Alabama, Tuscaloosa, AL 35487-0288, USA. ' Department of Industrial Engineering, The University of Alabama, Tuscaloosa, AL 35487-0288, USA

Abstract: Fundamental to any logistics strategy is the minimisation of the costs of transportation, warehousing, inventory, and order processing while achieving the desired level of customer service. Benefits may be further leveraged through the coordinated management of related activities. Although a variety of logistics software has been developed, relevant variable marketing and distribution costs are frequently ignored. A prototype decision support system was developed during this research. It performs profitability analyses using the historical data contained in its database tables, and highlights the net customer profit margin for a given customer profile. It also displays the individual logistics, marketing and current asset charges, and can be used to evaluate the contribution margins of various customers. |What-if| analysis helps the user to change critical demand, product, and marketing cost parameters in order to analyse their impact on the base case costs.

Keywords: decision support systems; DSS; logistics strategy; supply chain management; SCM; logistics software; marketing costs; distribution costs; customer profit margin; profitability; demand costs; produt costs; cost reduction; logistics modelling.

DOI: 10.1504/IJLSM.2006.008219

International Journal of Logistics Systems and Management, 2006 Vol.2 No.1, pp.78 - 95

Published online: 23 Nov 2005 *

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