Abstract
Purpose: By studying the case of a Changsha engineering machinery manufacturing firm, this paper aims to find out the optimization tactics to reduce enterprise’s logistics operational cost. Design/methodology/approach: This paper builds the structure model of manufacturing enterprise’s logistics operational costs from the perspective of inter-firm network and simulates the model based on system dynamics. Findings: It concludes that applying system dynamics in the research of manufacturing enterprise’s logistics cost control can better reflect the relationship of factors in the system. And the case firm can optimize the logistics costs by implement joint distribution. Research limitations/implications: This study still lacks comprehensive consideration about the variables quantities and quantitative of the control factors. In the future, we should strengthen the collection of data and information about the engineering manufacturing firms and improve the logistics operational cost model. Practical implications: This study puts forward some optimization tactics to reduce enterprise’s logistics operational cost. And it is of great significance for enterprise’s supply chain management optimization and logistics cost control. Originality/value: Differing from the existing literatures, this paper builds the structure model of manufacturing enterprise’s logistics operational costs from the perspective of inter-firm network and simulates the model based on system dynamics.
Highlights
Social firm network is the sum of the dynamic interactions among various entities—whether individuals or organizations
Differing from the existing literatures, this paper builds the structure model of manufacturing enterprise’s logistics operational costs from the perspective of social firm network and simulates the model based on system dynamics
This paper build the structure model of manufacturing enterprise’s logistics operational costs from the perspective of social firm network and simulates the model based on system dynamics
Summary
Social firm network is the sum of the dynamic interactions among various entities—whether individuals or organizations. Most existing literatures study logistics cost control by using Mathematical model and simulation model. Mason, Ribera, Farris and Kirk (2003) develop a discrete event simulation model based on a multi-product supply chain, which integrates the transportation and inventory to control costs. This paper build the structure model of manufacturing enterprise’s logistics operational costs from the perspective of social firm network and simulates the model based on system dynamics. This rest of paper is organized as follows: Firstly we introduce methods of logistics cost control and the application fields of system dynamics.
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