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A dual-response strategy for global logistics under uncertainty: a case study of a third-party logistics company

A dual-response strategy for global logistics under uncertainty: a case study of a third-party logistics company
A dual-response strategy for global logistics under uncertainty: a case study of a third-party logistics company
This paper examines global logistics problems experienced by a third-party logistics (3PL) company that is responsible for transporting goods from one country to another by road, as well as warehousing goods in two countries. Because of the limited fleet capacity, the logistics company has to hire additional trucks from two countries in advance. However, customer’s shipment information is uncertain, and the accurate shipment notice is only available on the shipping day. This paper proposes a dual-response logistics strategy to be as responsive as possible for coping with short shipment notice time and uncertainty involved. A two-stage stochastic mixed 0–1 programming model is formulated to satisfy customer demand while minimizing the total logistics cost. A series of experiments demonstrate the effectiveness of the proposed stochastic model. Compared to the corresponding expected value model, the stochastic model provides a more responsive and less expensive global logistics system.
global logistics, dual-response logistics strategy, stochastic programming, third-party logistics
0969-6016
397-419
Wu, Yue
e279101b-b392-45c4-b894-187e2ded6a5c
Wu, Yue
e279101b-b392-45c4-b894-187e2ded6a5c

Wu, Yue (2012) A dual-response strategy for global logistics under uncertainty: a case study of a third-party logistics company. International Transactions in Operational Research, 19, 397-419. (doi:10.1111/j.1475-3995.2011.00839.x).

Record type: Article

Abstract

This paper examines global logistics problems experienced by a third-party logistics (3PL) company that is responsible for transporting goods from one country to another by road, as well as warehousing goods in two countries. Because of the limited fleet capacity, the logistics company has to hire additional trucks from two countries in advance. However, customer’s shipment information is uncertain, and the accurate shipment notice is only available on the shipping day. This paper proposes a dual-response logistics strategy to be as responsive as possible for coping with short shipment notice time and uncertainty involved. A two-stage stochastic mixed 0–1 programming model is formulated to satisfy customer demand while minimizing the total logistics cost. A series of experiments demonstrate the effectiveness of the proposed stochastic model. Compared to the corresponding expected value model, the stochastic model provides a more responsive and less expensive global logistics system.

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More information

Published date: 2012
Keywords: global logistics, dual-response logistics strategy, stochastic programming, third-party logistics
Organisations: Centre of Excellence for International Banking, Finance & Accounting

Identifiers

Local EPrints ID: 336443
URI: http://eprints.soton.ac.uk/id/eprint/336443
ISSN: 0969-6016
PURE UUID: ff96a7ea-b963-462a-a4b6-96110499af9c
ORCID for Yue Wu: ORCID iD orcid.org/0000-0002-1881-6003

Catalogue record

Date deposited: 27 Mar 2012 08:45
Last modified: 15 Mar 2024 03:20

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