Budapesti Gazdaságtudományi Egyetem

How the Lean Management Decision Influences the Transportation Cost in the Supply Chain?

Journal Komunikácie - vedecké listy Žilinskej univerzity v Žiline / Communications - Scientific Letters of the University of Žilina

authors: Kozák Tamás - Madlenak Radovan - Neszmélyi György Iván 

Abstract:

The purchase decisions require information on where each phase in a retail supply chain should be placed. The presented method is an integrated tool for retail supply chain transaction cost optimization. The model does not only present a company-level lean management’s decisions within a supply chain, but it also shows the exact method to optimize the supply chain competitiveness. The allocation model also illustrates how the purchase decisions are allocated for the producer, distributor, and retail companies. The complexity of the allocation model may be affected by the size of the logistic costs, the algorithm used to calculate the supply chain purchase decisions, and the final needs of the customers. The lean management approach could be redemption to a company, but the results do not help to enhance competitiveness for the whole supply chain in every case. In this paper, a model method is demonstrated that helps to gain the benefit of the lowest cost of integrated inventory management decisions. One of the essential parts of this research is that not only the lean management’s result is considered, but the effects of purchase decisions are integrated into the whole retail supply chain, as well. This type of integrated approach can have an exponential impact on the profitability of supply chain level effectiveness. In the paper are discussed issues that are important from the perspective of carriers, truck owners and operators, transportation policymakers, and shippers. Different capacities of transportation and their costs and performance characteristics from the lean aspect are discussed as well.

Congratulations to the authors!