Modelling the Effects of Traffic Congestion on JITRao, Kant; Grenoble, William L.
1991 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600039110005178
Increasing traffic congestion in many parts of the world threatensto disrupt the reliable transport performance required for effectiveimplementation of justintime logistics. An analytical framework forexamining the effects of congestion on logistics performance ispresented and mitigating options are suggested. The increasing problemof congestion is discussed and a general model is proposed with whichits effects on timesensitive logistics networks might be analysed.Utilising this model and supporting data from a Chicagoarea transportstudy, a numerical example calculating the costs ofcongestion for one component is developed and presented. Finally,some extensions of the base framework are proposed and discussed. Theseinclude using joint probability theory to examine the effects ofmultiple components and multiple suppliers and examining the expectedbenefits of some mitigating actions such as pooled deliveries andconsolidation.
Alternative Methods of Evaluating Capital Investments in LogisticsPegels, C. Carl
1991 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600039110141537
Evaluating capital investments for additions or modifications towarehouses, for replacement of equipment or for entirely new facilitiesis a complex activity which involves numerous financial, competitive andother considerations. The financial aspect of capital investments isaddressed and it is shown how ten different investment criteria can bebrought to bear on the capital investment issue. The ten investmentcriteria consist of five primary criteria and five secondary criteria.The primary criteria are payback period in years, nondiscounted rate ofreturn on investment, internal rate of return, Baldwin rate of return,and benefit cost ratio. All ten criteria are described and suggestionsare made when each criterion is appropriate.
Defining Service Levels to Evaluate European Logistics ConfigurationsZantinga, Jan T.; Gieben, Mark
1991 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/EUM0000000000379
The progress towards a common European market as well as theimplementation of JIT, MRP and other systems may lead to the need toreevaluate and possibly centralise the distribution systems of firmsoperating in Europe. How four firms analysed and changed their Europeanlogistics structures of warehouses, transport and information systems isdescribed. A fivestep evaluation and implementation process ispresented. The basic premise of the process is the correct definitionand management of service levels, after which alternative configurationsare developed. The cost implications are then evaluated, and the optimumalternative is established. Techniques for service analysis such as theuse of samples, isoday diagrams and distancetime diagrams are alsoincluded.
Interset Association between Measures of Customer Service and Market ResponseMohan Pisharodi, R.; Langley, C. John
1991 International Journal of Physical Distribution & Logistics Management
doi: 10.1108/09600039110141663
Customer service is often described as consisting of a set ofmeasurable elements. Similarly, market response to customer service maybe viewed as consisting of a set of components which are measurable.Most published empirical studies of the relationship between customerservice and market response, however, have represented market responsethrough the use of a single measure. The results of an empirical studyof interset association between two sets of measures, one representingthe elements of customer service measured in service levels and theother representing various forms of market response, are reported.Canonical correlation analysis of data collected from 91 grocery channeldyads indicated as expected a closer association of market responsewith customer perceptions of customer service than with supplierperceptions of the same. Also presented, is the contribution ofindividual measures to the close association between market response andcustomer perceptions of customer service.