Logistics and Transportation in Global Supply Chains: Review, Critique, and Prospects

Abstract

A supply chain denotes the series of operations by which raw materials are transformed into components, subassemblies, and finished goods, and then moved through a distribution system to the ultimate user or consumer of the item produced. Product transformation and storage occur at nodes of the network. When those are in different countries or areas of the world, logistics and transportation (between nodes) become even more important.In this tutorial, we review and compare a number of research papers. All are international in scope. Each article emphasizes one or more decisions or activities that distinguish a global supply chain. Some, such as location decisions and supplier selection, are important for domestic supply chains but are more complicated in the international arena. Major differences include border crossings and exchange rates. Other decisions, such as switching production from one country to another, are uniquely global and may depend upon tariffs, quotas, and local content restrictions.Following our rationale for the subset of literature that we chose, those articles are discussed, categorized, and compared in several complementary ways. An assessment is offered of the research conducted to date. Further studies that may be usefully undertaken are suggested.

Optimization of Transport Routes by Fuzzy Logic Methods

“…The quantitative values of the transport system parameters can be fuzzificate by means of the set membership functions. The corrective coefficient k j for each edge of the graph can obtain as a result of activating the conclusions of fuzzy production rules R (j) : R (1) : IF bad road conditions AND great urgency THEN w 1 = 1.5 -0.05х 1 -0.02х 2 ;…”

“…Choosing the best routes and delivery schemes is an important task in the movement of products by vehicles occupies, which is solved through a comparative analysis of all possible options [1]. The use of innovative technologies and new IT tools, along with the transport infrastructure development and the integration of all functions of supply management, improve the logistics network economic efficiency [2][3][4].…”

Application of the Fuzzy Modeling for Optimization of Transport Routes

“…As a result of activating the conclusions of fuzzy production rules at the output of the expert system, one can obtain the corrective factor k i for each edge of the graph that characterizes the transport and logistics infrastructure. The mechanism for obtaining a fuzzy inference is based on information of various origin, in particular experimental data, simulation results and expert opinions, which are presented in the form of fuzzy production rules R (j) : 1) : IF bad road conditions AND great urgency THEN w 1 = 1,5 -0,05х 1 -0,02х 2 ; R (2) : IF satisfactory road condition AND great urgency THEN w 2 = 1,4 -0,04х 1 -0,025х 2 ; R (3) : IF good road conditions AND great urgency THEN w 3 = 1,2 -0,02х 1 -0,035х 2 ; R (4) : IF bad road conditions AND little urgency THEN w 4 = 1,3 -0,025х 1 -0,055х 2 ; R (5) : IF satisfactory road conditions AND little urgency THEN w 5 = 1,2 -0,02х 1 -0,05х 2 ; R (6) : IF good road conditions AND little urgency THEN w 6 = 1,1 -0,01х 1 -0,04х 2 ; R (7) : IF bad road conditions AND high level of caution THEN w 7 = 1,4 -0,04х 1 + 0,03х 3 ; R (8) : IF satisfactory road conditions AND high level of caution THEN w 8 = 1,04 -0,04х 1 + 0,02х 3 ; R (9) : IF good road conditions AND high level of caution THEN w 9 = 1 -0,025х 1 + 0,01х 3 ; R (10) : IF bad road conditions AND low level of caution THEN w 10 = 1,2 -0,05х 1 + 0,04х 3 ; R (11) : IF satisfactory road conditions AND low level of caution THEN w 11 = 1,1 -0,03х 1 +0,02х 3 ; R (12) : IF good road conditions AND low level of caution THEN w 12 = 1 -0,04х 1 +0,02х 3 .…”

“…The rational organization of logistics operations and functions related to the movement of products by vehicles occupies an important place in the network of business processes in conditions of deepening globalization [1]. The use of innovative technologies and new IT tools, including e-commerce, along with the development of transport infrastructure and the integration of all functions of supply management, improve the economic efficiency of the logistics chain [2][3][4][5].…”

On Supply Chain Integration to Free Trade Zones: The Case of the United States of America

“…As the boundaries of chain extend to other countries, the required modification and alignments may be complex and challenging, due not only to cultural and communication differences, but also economical and risk constraints. Numerous studies have been conducted in global supply chain management wherein exchange rates and a multitude of regulations are incorporated in decision models (e.g., Arntzen, Brown, Harrison & Trafton, 1995; Beamon, 1998; Bookbinder, 2013; Meixell & Gargeya, 2005). A more sophisticated and hence realistic integration of a FTZ decision into supply chain management calls for further research.…”