Modelling interrelationships between logistics and transportation operations – a system dynamics approach

Abstract

Purpose – This paper aims to present a system dynamics model for the interdependencies between logistics strategies and freight transport. As efficient freight transport operations are a crucial part within securing the competitiveness of a company, the “right” logistics strategy plays a key role within realization of efficient transportation movements lowering environmental impacts. Design/methodology/approach – Freight transport is affected by different parameters determined within a logistics strategy. This research approach models interdependencies between logistics strategies and transportation movements through a systemic point of view. Findings – The paper starts with an overview of challenges in freight transport and highlights the parameters of a logistics strategy. Afterwards, the qualitative and quantitative model is presented. Numerical experimentation further illustrates the applicability while providing additional intuitively insights. Originality/value – The authors present a system dynamics model for the interdependencies between logistics strategies and freight transport. The developed model allows the comprehensive description and analysis of the system operations (parameters of logistics strategy) and taking also transport relevant factors (toll, CO2 internalization, infrastructure capacity) into account. The model should serve as a basis for the realization of sustainable transport operations. Thus, it may prove as useful to loaders/industry, logistics service providers as well as policy stakeholders regarding the realization of efficient, sustainable transport movements in future.