Logistics Costs Research Articles

Prerequisites for the formation of business alliances among agricultural exporters in Ukraine under martial law

This article explores the state and structural trends of the grain and oilseed market under martial law in Ukraine, focusing on the prerequisites for the formation of business alliances. In scientific literature, business alliances are often seen as strategies for achieving competitive advantages in globalized markets by pooling the resources and competencies of independent companies. However, the formation and functioning of business alliances in countering extreme business conditions remain underexplored. This study aims to summarize the prerequisites, factors, and potential benefits of forming business alliances among agricultural exporters. Despite the negative impact of war, Ukrainian agribusiness has demonstrated resilience and adaptability by maintaining a leading position in exports. The analysis of exporter ratings has shown significant changes in the distribution of market shares during the first two years of the war, indicating shifts in the market roles traditionally played by participants. Interviews with the CEOs of leading agricultural holdings in Ukraine outlined the main tactical and strategic decisions taken to mitigate the challenges of the war. Partnerships among independent agricultural producers have been widely used to respond to challenges such as closed export markets, finding new export routes, and achieving the necessary scale for export operations. Systematizing this experience could be of scientific and practical interest, particularly in the context of ongoing events in Ukraine. Effective communication and alliances among participants in the grain market may help address critical tasks such as creating competitive advantages in global grain trade, reducing costs for external and internal logistics, jointly using logistics infrastructure, and investing in capital-intensive projects to develop export infrastructure, especially under increased risk conditions.

Environmentally sustainable inventory control for perishable products: A bi-objective reorder-level policy

In order to improve sustainability and transparency in the decision making for inventory control, this paper presents a reorder-level model that considers product perishability. Conversely to most inventory control policies, the classical economic perspective is paired with an environmental one for a stochastic bi-objective optimization approach to reduce inventory logistics emissions and costs. In order to contrast stockouts, lost-sale costing and a service level constraint are integrated for a more comprehensive approach. Results show how the two objectives may be in contrast, and how Pareto-efficient solutions can help to analyze and select the proper trade-offs during decision making. Experiments indicate, for a case-study application, how the most relevant aspects affecting system performance are product shelf life and the possible need of temperature control during storage. Moreover, considering multiple sustainability perspectives in inventory management can help businesses consolidate and future-proof their operations, as well as meet environmental standards and customer demand for greener products and processes.

Incorporating Cost Risk in Supplier Selection for Long Term Contracts

Purchasing firms naturally select the supplier with the lowest total cost. Often overlooked is the impact of the duration of long-term contracts (common in the automotive industry). We provide a method to quantify how risk escalates with contract duration. Our method applies to virtually all cost elements. For clarity, we demonstrate it on logistics costs that can change over a long horizon, resulting in a change in the relative attractiveness of candidate suppliers. We simulate a case study to estimate the likelihood that each supplier will provide the lowest cost over the contract duration. Finally, we quantify the risk reduction afforded by dividing a long contract into a sequence of shorter contracts.

A Two-Echelon Multi-Trip Capacitated Vehicle Routing Problem with Time Windows for Fresh E-Commerce Logistics under Front Warehouse Mode

Given the swift expansion of fresh e-commerce, the front warehouse mode can respond quickly and ensure the quality of fresh products. However, the complexity of the supply chain structure under front warehouse mode poses a challenge in reducing logistics costs and improving distribution efficiency while meeting consumers’ immediate delivery demands. Therefore, this paper studies the vehicle routing problem of two-echelon fresh e-commerce under front warehouse mode. Considering trans-shipment time constraints between the two echelons and the characteristics of terminal distribution, this paper initially models the vehicle routing problem for front warehouses as a two-echelon multi-trip capacitated vehicle routing problem with time windows. A mixed-integer linear programming model is subsequently established. To solve the model, a hybrid genetic algorithm integrated with neighborhood search is developed. Matrix coding is employed to merge vehicle selection and route assignment decisions. Simultaneously, neighborhood search is applied to enhance the search capability of algorithms, thereby improving the quality of solutions. Furthermore, the effectiveness and efficiency of the model and algorithm are verified through experiments of varying scales. Finally, comparative strategies and sensitivity analysis highlight the advantages of multi-trip strategies and provide insights into the optimal vehicle capacity limit.

Pursuing Optimization Using Multimodal Transportation System: A Strategic Approach to Minimizing Costs and CO2 Emissions

The core problem of a multimodal transportation system is integrating various transportation modes into a cohesive, efficient, and user-friendly network. This study introduces a novel centralized load concentration approach for regions facing geographic challenges. The principal aim is improving multimodal transportation systems by mitigating CO2 emissions and improving operational efficiency. This will significantly reduce high logistics costs and the environmental impact caused by greenhouse gas emissions, particularly in land transportation, aligning with the global sustainable development goals and offering a promising path towards a more sustainable future. The proposed method implicates direct cargo transportation from its origin to the export ports without passing through intermediate centers. The mathematical model determines the most efficient means of transportation for each route, considering variables such as distance, volume, and type of cargo. Research results indicate that multiple hubs may not be necessary in scenarios with high freight concentration, which could streamline transportation and logistics operations. The modal preferences vary depending on regional dynamics and cargo characteristics, with rail and sea transport emerging as preferable options in specific circumstances, outperforming road transport. The proposed model shows reductions in logistics costs and CO2 emissions compared to road-focused scenarios. This study provides an adaptable framework for optimizing multimodal transportation systems in regions with similar geographic and logistical attributes. It offers a versatile solution to various contexts and needs. Lastly, the strategic integration of multiple modes of transportation is fundamental to improving efficiency and sustainability.

Cost comparison of four venous catheters: Short peripheral catheter, Long peripheral line, Midline, and PICC for peripheral infusion

Introduction: The use of midline catheters for patients requiring a peripheral IV infusion is sometimes limited by their cost. Although decision trees allow them to be positioned in relation to short peripheral cannulas (SPC), Midlines, and PICCs, their economic impact has not yet been evaluated. A study was conducted to estimate and compare the actual costs of using the three types of catheters for durations of 7, 14, and 21 days. Methods: A budget impact analysis compared midlines or mini-midlines/long peripheral cannulas (LPCs) with SPCs and PICCs for typical medical indications excluding indications requiring central line (infusion of irritant or vesicant drugs): treatment of peritonitis over 7 days, cystic fibrosis infection over 14 days, and meningitis over 21 days. A micro-costing study identified resources used during catheter care procedures (consumables, medical/nursing care, examinations, mechanical complications). The cost of remote systemic complications was estimated from the French national cost study. Literature review compared data based on published complication frequencies. Results: Midline is more economic than the SPC (saving of 39€ over 7 days and 174€ over 14 days), and than the PICC (saving of 102€ over 14 days and 95€ over 21 days). Discussion: Despite a much higher acquisition cost of the Midline than a SPC, the cost of using a Midline is lower. Although this approach cannot be the only argument for choosing a medical device, it can contribute to it in a tense economic context. The micro-costing has been performed in a center placing PICCline using fluoroscopy for catheter tip positioning. The implantation of a PICC with ECG technique does not require an interventional radiology facility and involves significantly lower logistical and personnel costs. This factor is a limitation in this study. However, even with the use of EGC, the cost difference is in favor of Midline.

Logistic Analysis of Fishery Cold Supply Chain

As a country where two-thirds of its territory consists of oceans, the fisheries sector is one of the government's main programs. Fisheries, which is also an agricultural subsector, has great potential in developing the country's economy, which is shown by the increasing number of fisheries production from year to year. The increase in the production of fishery products, both raw and processed materials, must be balanced with an effective and efficient distribution system method to ensure the quality of the fish remains in good condition. Good distribution management of fish products by controlling product temperatures that remain low throughout the distribution process is known as cold supply chain management. This requires cold supply chain management to be handled well because it has a controlling effect on fisheries logistics costs. Some of the facts above are the background for this research through analysis of the logistics cost structure, including the obstacles faced by the cold chain supply chain for caught fish and the cold chain business prospects and obstacles faced by this industry. Analysis of the distribution process also involves a review of the refrigerated transport fleet. The methodology used in this study is a mix method which begins with the development and distribution of questionnaires related to logistics operations and fishing costs. Next, data collection was carried out through interviews with fishermen, collectors and traders on the north and south coasts of Java Island.

Logistics distribution scheduling algorithm based on artificial intelligence

In order to improve the quality of urban logistics distribution services and meet customer needs to the greatest extent, improve the utilization rate of service resources and reduce the cost of logistics and distribution services, the author proposes an urban logistics distribution scheduling algorithm based on artificial bee colony. Uncertain dynamic customer demands often occur during the execution of logistics distribution services, resulting in the inability to achieve optimal cost by executing the distribution service according to the original plan, in response to such problems with dynamic customer needs, the author conducted a problem analysis, the corresponding mathematical model is established and transformed into a static problem for rescheduling. The result shows: Using the scheduling algorithm to solve the example 100 times, when the vehicle 1 and vehicle 3 can meet their own load, they can serve customers with new needs, which can make the delivery cost the lowest. In the case of a small number of customers, the algorithm can achieve high accuracy, and when the number of customers reaches a certain scale, the stability of the algorithm will decrease slightly. ConclusionThe algorithm achieves the purpose of promptly responding to changes in customer demand and quickly adjusting distribution services.

Drone-Based Instant Delivery Hub-and-Spoke Network Optimization

Drone-based transportation is emerging as a novel mode in city logistics, featuring first-mile pickup and last-mile instant delivery using drones and truck transshipment. A fundamental challenge involves coordinating merchants, drones, transshipment hubs, trucks, and consumer communities through the hub-and-spoke network (HSN). This study formulated the optimization problem for HSN to minimize logistics costs and loss of orders constrained by service time limits. The ε-constraint model, two evolutionary algorithms based on Non-dominated Sorting Genetic Algorithm II (NSGA-II) using permutation (EAp) and rand key-based (EAr) encoding/decoding schemes were devised to solve the bi-objective mathematical program. Three groups of twelve experiments were conducted using ideal datasets and datasets generated from Shenzhen city to validate the models and algorithms. Relaxing the logistics objective by 10% and subsequently minimizing the loss of orders can significantly reduce average unmet orders by 24.61%; when spokes were beyond 20, the ε-constraint model failed to achieve solutions within an acceptable time. While EAp and EAr demonstrated competence, EAr proved to be more competitive in computation time, hypervolume, spacing metric, and the number of non-dominated solutions on the Pareto fronts. Key parameters influencing the HSN solutions include drone and truck speeds, acceptable delivery times, and the processing and waiting time at hubs.

Cold Chain Logistic for Pharmaceuticals Products

This research paper explores the important position of cold chain logistics inside the pharmaceutical quarter, focusing on the precise challenges and possibilities inside this area. The look at employs a group-primarily based move-sectional method, making use of each quantitative and qualitative facts to assess the performance of cold chain management for temperature-sensitive prescribed drugs. It highlights the fast improvement of bloodless chain logistics in China, driven via national rules, yet underscores the persistent challenges, along with the excessive value of pharmaceutical cold chain logistics, the need for technological improvements, and the scarcity of professional experts inside the field. The paper also addresses the imperfections within the regulatory machine governing pharmaceutical cold chain logistics, emphasizing the importance of setting up a standardized and transparent regulatory framework to ensure the safety and efficacy of pharmaceutical products at some point of their lifecycle. Through a complete evaluation of the current panorama and proposed optimization techniques, the research goals to make contributions to the enhancement of pharmaceutical bloodless chain logistics, selling the safe and green delivery of critical medications and vaccines. KEYWORDS: Research Paper, Pharmaceutical Cold Chain, Cold Chain Logistics, Optimization of Pharmaceutical Cold Chain, Logistics in Pharmaceutical Cold Chain Logistics, Cost of Pharmaceutical Cold Chain Logistics

Analysis Effect of Parameters of Genetic Algorithm on a Model for Optimization Design of Sustainable Supply Chain Network Under Disruption Risks

Abstract Over the last decade, our world exposed to many types of unpredictable disasters (recently Coronavirus). These disasters have clearly shown the uncertainty and vulnerability of supply chain systems. Also, it confirmed that adopting Just-in-Time (JIT) strategy to reduce the logistic chain cost may lead to inbuilt complexity and risks. Efficient tools are therefore needed to make complexity optimized supply chain decisions. Evolutionary algorithms, including genetic algorithms (GA), have proven effective in identifying optimal solutions that address the trade-offs between total supply chain cost and carbon emissions regulatory policy represented by carbon tax charges. These solutions pertain to the design challenges of supply networks exposed to potential disruption risks. However, GA have a set of parameters must be chosen for effective and robust performance of the algorithms. This paper aims to set the most suitable values of these parameters that used via GA – ased optimization cost and risk reduction model in firms using a JIT as a delivery system. The model has been conceptualized for addressing the design complexities of the supply chain, referred to as SCRRJITS (Simultaneous Cost and Risk Reduction in a Just-in-Time System). A complete analysis of the different parameters and operators of the algorithm is carried out using design of experiments approach. The algorithm performance measure used in this study is convergence of solutions. The results show the extent to which the quality of solution can be changed depending on selection of these parameters.

Freeport as a Hub in the Art Market: Shanghai Art Freeport

With the soaring interest in art as an alternative investment approach and an asset class, there has been a remarkable rise in the volume of artwork transactions globally. However, trading in the art market differs from the traditional financial market; the cost of taxes, logistics, storage, and other transaction services is enormous for collectors, stimulating the emergence of related businesses, such as warehousing, bonded exhibitions, and art financial services. As an exceptional area serving the offshore economy, art freeports have become an essential venue for art trading and a ‘one-stop-shop’ centre that converges all art market participants. This article critically analyses the current literature and conducts empirical research on Shanghai FTZ International Culture Investment and Development Co., Ltd. (FTZART). It can be concluded that the current research on art freeports is limited and excludes FTZART from those that specialise in storing artworks, overlooking its potential influence in the Asian market. The art freeport has distinctive features that differ from traditional freeport models, and the context, business model, and operations of FTZART match these characteristics. Therefore, as a hub in the art market, the global art freeport agenda should not overlook FTZART, and it is essential to complement this gap in knowledge.

Optimization of mixed cargo allocation and stowage with heterogeneous vehicles

In order to solve the problem of low efficiency and high loading costs in business logistics and distribution operations, this paper classifies non-standard cargoes based on their spatial and temporal characteristics. Based on this, a dual-layer planning model for multi-vehicle cargoes loading and transportation is constructed to jointly optimize the loading process. This paper designs a space-inspired heuristic algorithm to solve the model and verifies the feasibility of the model. The results show that compared to a single vehicle type, the joint optimization of multi-vehicle combinations for loading and transportation has stronger adaptability and can better accommodate changes in cargo volume. Compared to the single vehicle type, not only did the loading rate increase by 18%, but also effectively reduced the transportation cost by 3%. Different proportions of spatial and temporal characteristic cargoes have different effects on the loading and transportation. Adjusting the proportion of cargoes that can be placed on both upper and lower layers to 50% can better utilize transportation resources such as vehicles. Increasing the proportion of urgent cargoes can improve the economic efficiency of loading and transportation.

Configuration of last-mile distribution networks for an encroaching manufacturer

AbstractThe surge of e-commerce has revolutionized distribution channels, escalating from simple single-channel frameworks to complex multi-channel and omni-channel networks. In particular developments in information technology and rising customer expectations have popularized the transition from multi- to omni-channel distribution, where the classic brick-and-mortar stores can also be part of the omni-channel distribution strategy. This evolution poses intricate challenges for manufacturers, especially in the integration and optimization of these channels. Thus, there is a strong need for an in-depth analysis of how manufacturers navigate the transition across diverse distribution channels to meet the varying needs of different customer segments. To this end, we investigate single-, multi-, and omni-channel distribution strategies for the case of a manufacturer selling both standard and customized products to different customer segments with varying preferences. A central contribution of this research is the creation of an integrated optimization model that resolves a location-routing problem, designing a complex and realistic supply chain configuration suitable for an omni-channel distribution system. This model strategically serves to fragmented customer demands through multiple shopping and delivery options. The outcomes of our study indicate that an omni-channel distribution system is a viable approach, capable of serving more customer segments while simultaneously minimizing logistics costs. In addition, we offer a detailed analysis of the cost implications of in-store pickup versus home-delivery options, providing a comprehensive evaluation of their respective impacts on total logistics costs and customer responsiveness.

Logistics distribution route optimization of electric vehicles based on distributed intelligent system

Abstract The data management system of health cloud authentication plays an important role in the optimization of logistics vehicle routing. It can not only help logistics vehicles choose the best distribution path, but also save time and cost and improve economic efficiency. At present, logistics has not yet formed a complete service system. High distribution costs and low distribution efficiency limit the development of the entire logistics. The reduction of logistics costs and the improvement of distribution efficiency have become the top priorities of the society. The optimization of the distribution route is the key to cost saving and distribution logistics. It is particularly important to study and optimize the distribution route, because the distribution route affects the logistics transportation efficiency and the loss cost during transportation. Therefore, this paper adjusted the scheduling system of logistics vehicles through a distributed intelligent system, and optimized the path of logistics vehicles according to the improved genetic algorithm, thereby reducing the transportation cost of logistics and improving the efficiency of logistics distribution. This article first explains the definition, classification, and main components of the delivery vehicle routing problem. Then, using cloud authentication path optimization, a distributed intelligent system is constructed. Finally, an improved ant colony algorithm is used to analyze and study the distance constraints of vehicles. By improving the ant colony algorithm, it can be seen that the optimized path pheromone concentration and the optimized sub-function have gradually increased with time. The mean pheromone concentration was 40 %, and the seventh day was 15 % higher than the first. The mean value of the optimized subfunction was 0.34 %, and the seventh day was 20 % higher than the first. The distribution cost and distribution efficiency of the optimized logistics vehicle distribution path were much higher than those of the traditional logistics distribution path. Moreover, the distribution cost of the logistics distribution path was 9 % lower than the traditional one, and the distribution efficiency was 13 % higher. The average smoothness of the optimized logistics path is about 90 %, and the seventh day is 11 % higher than the first day. The average fitness of the optimized logistics path is 88 %, and the seventh day is 14 % higher than the first day. In a word, the data management system can uniformly schedule logistics vehicles and improve the efficiency of distribution.

Sustainability Assessment of 2G Bioethanol Production from Residual Lignocellulosic Biomass

The development of sustainable biofuels can help to reduce the reliance on fossil fuels and mitigate the impact of climate change. This study analyzes bioethanol production from agro-forestry residual biomass, namely eucalyptus residues and corn stover. The study includes process simulation using Aspen Plus software, followed by economic analysis and life cycle assessment (LCA) with the help of SimaPro software and by applying the environmental footprint (EF) 3.0 method. The economic analysis on the biorefinery’s economic viability, equipment, and production costs reveals a positive decision for bioethanol production from eucalyptus residues due to logistical and transportation costs. The minimum ethanol selling price (MESP) obtained was 2.19 €/L and 2.45 €/L for eucalyptus residues and corn stover, respectively. From the LCA with a functional unit of 1 MJ of ethanol, bioethanol production from eucalyptus residues results in a single score impact of 37.86 µPt, whereas for corn stover, it is 33.47 µPt. In the climate change impact category, the eucalyptus residues scenario has an impact of 0.264 kg CO2 eq/MJ ethanol while corn stover leads to 0.254 kg CO2 eq/MJ ethanol. In-situ enzyme production, heat integration, and the use of renewable energy sources were also analyzed. Combining in situ enzyme production with renewable energy sources lowers CO2 equivalent emissions by 89% for both feedstocks, in comparison to the base-case scenario.

State regulation instruments for the development of the agro-industrial complex under martial law in Ukraine

Amidst the crisis in the food sector of the country caused by the Russian invasion and on the way to Ukraine's association with the European Union, the role of state regulation is growing. The study aimed to provide proposals for improving the food industry development programmes in the agro-industrial complex to improve the food supply of the population, innovative development of enterprises and ensure food security in Ukraine. General scientific methods were used in the study: dialectical, statistical, structural and functional analysis, tabular, systematic generalisation, and comparisons. The study summarises the existing programmes of support and development of the agricultural sector of Ukraine at the governmental and interstate levels. The problems of food and agricultural enterprises in the context of Russian aggression in Ukraine are identified, in particular, in terms of environmental damage and pollution, instability of energy supply, and rising logistics costs. The author notes the effectiveness but selectivity of grant support with the participation of foreign capital. The programme documents for the development of the agro-industrial complex and the food industry are systematised and their interconnection is analysed. These documents include the National Economic Strategy and the strategy for the development of its agricultural component, sectoral support programmes, sectoral strategies, and international and national programmes. The article presents proposals for the programme documents for the development of the food industry aimed at post-war recovery and further innovative development. The proposals take into account foreign experience, industry specifics and changes to the current legislation. Sectoral development programmes should be in line with the strategic guidelines until 2030 and the provisions of the Association Agreement with the European Union, contribute to solving environmental pollution and climate change, waste recycling and creating closed production cycles with high added value. The results obtained can be used in further research, programmes, recommendations and strategies of legislative and executive authorities for the effective development of the food industry as part of the agri-food complex and the improvement of food supply to the population.

Fresh agricultural products cold chain logistics distribution and path optimization

Based on the reference to the existing research results, combined with the enterprise's current distribution path, to minimize the cost as the research objective, to establish the relevant model, and put forward the control of logistics costs, increase the infrastructure investment in cold chain logistics, the optimization of the path of countermeasure proposals, to further improve the efficiency of the enterprise distribution and increase customer satisfaction at the same time reduces the cost of distribution, increase the core competitiveness of the industry.

Research on Logistics Cost Management Strategy for Wood Processing Industry Based on Environmentally Conscious Supply Chain

Introduction: The wood processing industry is an important component of the forestry industry; It is a green and low-carbon industry with low energy consumption and low environmental pollution. With the acceleration of global economic integration, logistics costs have become a key factor in improving the development level of wood processing enterprises and an important component of the competitiveness of the forestry industry. In response to the current problem of high logistics costs in Chinese wood processing enterprises, starting from the innovative concept of logistics cost management, a strategic management system for logistics costs is constructed using Environmentally Conscious Supply Chain, management theory; Strengthening the logistics cost management of wood processing enterprises in the forestry industry plays an important role in promoting China's transition from traditional quantity forestry to modern efficiency forestry. Objective: To improve the overall level of logistics cost management of the whole country's wood processing industry. Results and Discussion: Forestry is an integrated industry combining the economic value, ecological value and social value of forests. Due to the importance of t green coordinated and sustainable development of overall benefits in the forestry green supply chain, it is not only necessary to achieve economic benefits, but also to continuously increase resources and improve the ecological environment. Research Implications: This research can implemented in order to bring environmental sustainability

Development of Gresik – Mojokerto Railway Infrastructure to Accelerate Economic Growth in Gerbangkertosusila

The most important economic area in East Java is the Gerbangkertosusila (GKS) area. The GKS area between Gresik – Mojokerto is not yet connected directly, almost all goods have to go through Surabaya and Sidoarjo first. This results in high logistics costs and long travel times. The research method used in this research is a qualitative research method on economic growth factors in the GKS area. The factors considered in economic growth are population, number of people of productive age, number of people who are not yet working, minimum income/month, number of poorer people, percentage of poorer people, length of roads, number of people accessing the internet, number of telecommunication towers, length of roads damaged, investment value, export value, import value, and gross regional domestic product (GRDP). The analytical tool used in the research is a descriptive method to measure and assess the quality of economic growth and changes in regional economic growth factors, assisting strategic planning for the construction of new railway lines as the right solution for developing regional economic growth. Therefore, to accelerate economic growth and reduce logistics costs in the GKS area, a new railway line between Gresik - Mojokerto should be built. If logistics costs are low, it will reduce the price of goods and increase the opportunity to order goods and open up new jobs. If new job opportunities are opened, it will be possible to reduce the number of unemployed people by 375,392 people and the poorer population by 719,944 people. So it is hoped that it will increase economic growth to reach 7%. Only the Gresik and Sidoarjo regions have met this economic growth. Mojokerto’s economic growth is still 5.56% and lags behind other regions. If the construction of the new Gresik – Mojokerto train line is realized, then economic growth in the GKS region of at least 7% will not be difficult to achieve.