Logistics, Volume 8, Issue 2 (June 2024) – 22 articles

Background: The ongoing technical innovation is fully involving transportation sector, converting the usual mass-transit system toward a sustainable mobility. Make-or-buy decision are usually adopted to assess different solutions in terms of costs-benefits to put in place strategic choices regarding in-house production or from an external supplier. This can also be reflected on maintenance operations, thus replicating a similar approach to transport companies involved. Method: A decision-making model by means of a multi-criteria analysis can lead make-or-buy choices adapted to maintenance. A brief introduction into the actual mobility context is provided, evaluating global and national trends with respect to the mobility solutions offered. Then, a focus is set on maintenance approaches in mobility sector and the need of a make-or-buy decision process is considered. The decision-making path is developed through a multi-criteria framework based on eigenvector weighing assessment, where different Key Performance Indicators (KPIs) are identified and exploited to assess the maintenance approach at stake. Results: A comparison among different scenarios considered helped in identify the solution offered to the transport operator. In particular, for the case study of interest a −35% decrease in maintenance specific cost and −44% in cost variability were found. Reliability of the fleet was kept at an acceptable level compared to the reference in-house maintenance (≥90%) while an increase in the Mean Time Between Failure was observed. Conclusions: For the purposes of a small company, the method can address the choice of outsourcing maintenance as the best. Finally, a general trend is then extrapolated from the analysis performed, in order to constitute a decision guideline. The research can benefit from further analysis to test and validate that the selected approach is effective from the perspective of transport operator. Full article

Background: Sustainable closed-loop supply chains have emerged as viable answers to supply chain problems. They can handle environmental damages (e.g., waste) and related social impacts. Closed-loop supply chains (CLSCs) are forward and reverse supply chain networks that have gained popularity in recent years. Recovery options such as reusing, remanufacturing and recycling can be considered in CLSCs. Methods: This paper provides a comprehensive evaluation of CLSC journal papers published between 2020 and the present. This study examines and synthesizes 54 papers from major publications in this area, covering a wide range of themes and approaches. This paper aims to respond to the following key questions: (i) What are the current trends and challenges in CLSC research, and how have they evolved since previous literature review papers? (ii) What key variables and objectives have been studied in recent CLSC research, and how have they been operationalized? (iii) What are the gaps and limitations in current CLSC research? To our knowledge, other literature review papers in this field have covered older papers, and recent papers have been ignored in them. Another research contribution of this paper is the taxonomy of it. Results: This review article highlights some developing themes and research gaps in the CLSC literature and makes recommendations for further study. Conclusions: This paper provides a comprehensive review of papers on closed-loop supply chain networks. Full article

Background: Technological advancements, particularly in Artificial Intelligence (AI), are revolutionizing operations management, especially in the domain of supply chain management. This paper delves into the application of AI in demand planning processes within the supply chain context. Drawing upon a comprehensive review of the existing literature, the main objective of this study is to analyze how AI is being applied and adopted in the demand planning process, identifying the resources needed to build the capacity of AI in the demand process, as well as the mechanisms and practices contributing to AI capability’s advancement and formation. Methodology: The approach was qualitative, and case studies of three different companies were conducted. Results: This study identified crucial resources necessary for fostering AI capabilities in demand planning. Our study extends the literature on AI capability in several ways. First, we identify the resources that are important in the formation of the capacity to implement AI in the context of demand planning. Conclusions: This study’s practical contributions underscore the multifaceted nature of AI implementation for demand planning, emphasizing the importance of resource allocation, human capital development, collaborative relationships, organizational alignment, and relational capital and AI. Full article

Background: This publication presents a review, multiple criteria optimization models, and a practical example pertaining to the integration of automated smart locker systems, capillary distribution networks, crowdshipping, last-mile delivery and supply chain management. This publication addresses challenges in logistics and transportation, aiming to enhance efficiency, reduce costs and improve customer satisfaction. This study integrates automated smart locker systems, capillary distribution networks, crowdshipping, last-mile delivery and supply chain management. Methods: A review of the existing literature synthesizes key concepts, such as facility location problems, vehicle routing problems and the mathematical programming approach, to optimize supply chain operations. Conceptual optimization models are formulated to solve the complex decision-making process involved in last-mile delivery, considering multiple objectives, including cost minimization, delivery time optimization, service level minimization, capacity optimization, vehicle minimization and resource utilization. Results: The multiple criteria approaches combine the vehicle routing problem and facility location problem, demonstrating the practical applicability of the proposed methodology in a real-world case study within a logistics company. Conclusions: The execution of multi-criteria models optimizes automated smart locker deployment, capillary distribution design, crowdshipping and last-mile delivery strategies, showcasing its effectiveness in the logistics sector. Full article

Background: Scholarly literature indicates a slow pace at which maritime ports fully embrace digital transformation (DT). The reasons to this are largely anecdotal and lack solid empirical grounding. This inhibits an overall understanding of DT’s tenets and the development of evidence-based policies and targeted actions. Methods: This study deployed a qualitative case study strategy to unpack the challenges of undertaking DT through the lens of principal-agent theory (PAT). Results: Analysis of data collected through 13 semi-structured interviews from a port’s value chain stakeholders revealed five thematic challenges that contradict successful implementation of DT. These included interagency constraints and system ownership tussles; system sabotage and prevalent corruption; prevalent human agency in port operations; cultural constraints; and political influence on port governance. Conclusions: To address these challenges, the study proposes a four-stage empirically grounded DT strategy framework that guides both practitioners and policymakers through DT endeavors. The framework includes: (1) the port’s value chain mapping, (2) stakeholder engagement, (3) resource mobilization, and (4) effective monitoring. For scholars, we provide an avenue for testing statistical significance of association and causality among the identified challenges. Full article

Background: Improving the performance of marine terminals is one of the major concerns of both researchers and decision-makers in the maritime transportation sector. The problem of container storage planning and the berth allocation problem (BAP) are the two mainstays of optimizing port operations. Methods: In this work, we address these two issues, proposing two mathematical models that operate sequentially and are applicable to both static and dynamic cases. The first developed model is a mixed-integer linear problem model aimed at minimizing vessel traffic time in the port. The second model developed is a multi-objective optimization model based on goal programming (GP) to minimize both container transfer time and the number of storage areas (minimizing container dispersion). Results: The robustness of the proposed models has been proven through a benchmark with tests using data from the literature and real port data, based on the IBM ILOG CPLEX 12.5 solver. Conclusions: The two developed mathematical models allowed the both minimization of the transfer time and the number of used storage areas, whatever the number of operations handling companies (OHCs) operating in the seaport and for both static and dynamic cases. We propose, as prospects for this work, the development of a heuristic model to deal with the major instances relating to the case of large ports. Full article

Background: Additive manufacturing (AM) for patient-specific medical care products offers great opportunities. However, evidence about the supply chain (SC) performance impact based on empirical data is limited. Methods: In this case study, we gathered real-life data about a traditional manufacturing orthopedic shoe SC and developed future scenarios in which AM is introduced at various points and with different degrees of penetration in the SC. Results: Presently, AM can only replace traditional manufacturing of tools and shoe components at a higher total cost. However, with maturing technology, the complete AM production of orthopedic shoes is expected to become feasible. Theoretically, that could disrupt existing SCs, eliminating 70% of the SC steps, improving SC lead time by 90%, and altering SC relations. However, certain thresholds currently prevent disruption. Specifically, the AM of complete orthopedic shoes has to become possible, manufacturing prices have to drop, and traditional craftsmanship has to be integrated into the digital product design. Conclusions: A framework for transition pathways, including directions for future research, is formed. Findings provide valuable insights for scholars and decision makers in the patient-specific products industry, health insurance providers, and healthcare policy makers to be better prepared by adjusting SC designs, relationships, and remuneration programs while AM technology develops towards maturity. Full article

Background: The Clustered Orienteering Problem is an optimization problem faced in last-mile logistics. The aim is, given an available time window, to visit vertices and to collect as much profit as possible in the given time. The vertices to visit have to be selected among a set of service requests. In particular, the vertices belong to clusters, the profits are associated with clusters, and the price relative to a cluster is collected only if all the vertices of a cluster are visited. Any solving methods providing better solutions also imply a new step towards sustainable logistics since companies can rely on more efficient delivery patterns, which, in turn, are associated with an improved urban environment with benefits both to the population and the administration thanks to an optimized and controlled last-mile delivery flow. Methods: In this paper, we propose a constraint programming model for the problem, and we empirically evaluate the potential of the new model by solving it with out-of-the-box software. Results: The results indicate that, when compared to the exact methods currently available in the literature, the new approach proposed stands out. Moreover, when comparing the quality of the heuristic solutions retrieved by the new model with those found by tailored methods, a good performance can be observed. In more detail, many new best-known upper bounds for the cost of the optimal solutions are reported, and several instances are solved to optimality for the first time. Conclusions: The paper provides a new practical and easy-to-implement tool to effectively deal with an optimization problem commonly faced in last-mile logistics. Full article

Background: Due to the remarkable growth in online retail sales in New Zealand, a large number of parcels are needed to be delivered to consumers’ doorsteps. Home deliveries in major New Zealand cities (e.g., Christchurch) typically occur between 9 a.m. and 6 p.m. on weekdays, when many home delivery attempts fail. This leads to adverse effects, such as vehicular traffic in residential areas and greater air pollution per parcel delivered. However, home deliveries outside of typical business hours (i.e., before 9 a.m. and after 5 p.m.) might be worthwhile to help subside the above issues. Therefore, this study investigated consumers’ preferences for receiving home deliveries during various times, such as early morning, morning, afternoon, late afternoon, and evening. Methods: The data used in this study were obtained via an online survey of 355 residents of Christchurch city. Non-parametric tests, namely the Friedman test, Wilcoxon signed-rank test, and ordinal logistic regression, were carried out to examine consumer preferences for the above time slots. Results: The results showed that consumers preferred the late afternoon (3 p.m. to 6 p.m.) time slot the most for receiving home deliveries. Conclusion: It appeared that the off-peak delivery option is less likely to draw the desired consumer patronage and is thus less likely to assist in lowering the number of unsuccessful home deliveries, the transportation costs incurred by service providers, traffic congestion, and pollution in urban areas. Full article

Background: A measurable feature of the efficiency of vehicle use in transportation companies is the revenue from transport orders, which has a significant impact on their profitability. Therefore, it is important to skillfully analyze the parameters related to the operation of vehicles and their impact on the bottom line. Transportation companies, when managing their operations, take steps to reduce operating costs. The above makes a large number of studies available in the literature on the analysis of vehicle damage or wear of system components, as well as ways to predict them. However, there is a lack of studies treating the impact of the parameters of specific orders on economic efficiency, which is a research niche undertaken in the following study. Methods: The purpose of this article was to analyze the economic efficiency of vehicle operation in terms of the financial security of enterprises. The main research problem was formulated in the form of the question of how the various parameters of a transport order affect its profitability. During our study, critical analysis of the literature, mathematical modeling and inference were used. A detailed analysis of transport orders executed by SMEs (small and medium-sized enterprises), which are characterized by a fleet of light commercial vehicles with a capacity of up to 3.5 t, was carried out in the FMCG (Fast-Moving Consumer Good) industry in Poland in 2021–2022. Due to the binary variable form, a logistic regression model was elaborated. The estimated parameters of the model and the calculated odds ratios made it possible to assess the influence of the selected factors on the profitability of orders. Results: Among other things, it was shown that in the case of daily vehicle mileage, the odds quotient indicates that with each additional kilometer driven, the probability of profitability of an order increases by 1%. Taking into account the speed of travel, it is estimated that with an increase in its value by 1 km/h, the probability of profitability of an order decreases by 3%. On the other hand, an increase in cargo weight by 1 kg makes the probability of a profitable order increase by 9%. Conclusion: Through this study, the limited availability of low-cost analytical tools that can be applied during transportation fleet management in SME companies was confirmed, as was the use of simple and non-expansive mathematical models. At the same time, they are not “black boxes” and therefore enable drawing and implementing model conclusions into operations. The results obtained can help shape the overall strategy of companies in the area of vehicle operation and can support the decision-making process related to the management of subsequent orders, indicating those that will bring the highest profit. The above is very important for SME companies, which often operate on the verge of profitability. Full article

Background: literature on last mile logistic electrification has primarily focused either on the stakeholder interactions defining urban rules and policies for urban freight or on the technical aspects of the logistic EVs. Methods: the article incorporates energy sourcing, vehicles, logistics operation, and digital cloud environment, aiming at economic and functional viability. Using a combination of engineering and business modeling combined with the unique opportunity of the actual insights from Europe’s largest tender in the automotive aftermarket electrification. Results: the Last Mile Logistics (LML) electrification is possible and profitable without jeopardizing the high-tempo deliveries. Critical asset identification for a viable transition to EVs leads to open new lines of research for future logistic dynamics rendered possible by the digital dimensions of the logistic ecosystem. Conclusions: beyond the unquestionable benefits for the environment, the electrification of the LML constitutes an opportunity to enhance revenue and diversify income. Full article

Background: Healthcare 4.0 has transformed supply chain management in the healthcare sector, but there is a lack of comprehensive frameworks to evaluate the impact of Healthcare 4.0 technologies on sector operations, particularly in developing countries. Methods: This study introduces a multi-criteria framework that synergically combines the techno-economic implications of Healthcare 4.0 technologies to improve healthcare supply chain management. The proposed approach innovatively integrates fuzzy VIKOR and Entropy methods to handle data vagueness and uncertainty, using data collected from healthcare supply chain specialists in Lagos, Nigeria. Results: The developed framework identifies the most and least critical technical and economic parameters for Healthcare 4.0 implementation in healthcare supply chain management. It also determines the suitability of different Healthcare 4.0 technologies for supply chain management in the healthcare sector. Conclusions: The main innovation of this study lies in the development of a comprehensive and context-specific framework for evaluating Healthcare 4.0 technologies in healthcare supply chains. The framework offers a new perspective on technology evaluation and provides practical insights for decision-makers. The findings contribute to advancing knowledge and practice in this field, promoting the proper adoption of Healthcare 4.0 technologies in healthcare, particularly in developing countries. Full article

Background: The importance of up-to-date product master data in the digital age should not be underestimated. However, companies still struggle to ensure high-quality product data, especially in the field of logistics. Hence, the focus of our research lies in the disregard of the importance of product data quality to the performance of logistics processes. Methods: The analysis of the influence of product data on the performance of logistics processes was carried out using data from two fast-moving consumer goods (FMCG) distribution and retail companies. Data were gathered via interviews, while process activities were timed using a stopwatch, and interruptions were documented. The significance of the impact was determined using inferential statistical procedures based on the variable and the measurement scale type employed. Results: The quality of product master data has a significant impact on the performance of logistics processes; while managers are aware of the complications, they lack the motivation to detect and analyse such inaccuracies. Conclusions: The findings enhance comprehension of the obstacles generated by inadequate product data in logistics, which obstruct optimisation, and offer numerical proof of the impact of product data quality on logistics performance, thus expanding the current body of research. Full article

Background: Due to the absence of unified global regulations, defining the service and legal role of freight forwarders is challenging. This, as well as the lack of a standardized limit to the freight forwarder’s liability for loss or damage to the cargo, introduces misunderstandings into his relationship with the client. The purpose of this study is to analyze the most widely used limit for freight forwarder’s liability, set in Special Drawing Rights (SDR) units, and to adjust it, which will allow for maintaining the purchasing power of the compensation amount over different periods of time. Methods: In this study, two methods of adjusting the liability limit were proposed. In accordance with the first one, the limit was adjusted considering the impact of dollar inflation on the SDR unit. The second method involves changes in the limit of liability, taking into account changes in world prices for goods. Results: The result of this study showed that the second method is more functional, helping to preserve the purchasing power of the liability limit most effectively over time. Conclusions: This study revealed the fluctuating purchasing power of the forwarder’s liability limit over time and suggests utilizing a methodology tied to changes in global goods’ prices for adjustment. Full article

Background: Business continuity entails the potential negative consequences of uncertainty on a firm’s ability to achieve strategic objectives. The COVID-19 pandemic significantly impacted business continuity due to lockdowns, travel restrictions, and social distancing measures. Consequently, firms adopted specific supply chain (SC) practices to effectively navigate this global crisis. Methods: This research adopted a stochastic approach based on Bayesian Networks to evaluate the implications of business continuity on firms’ decisions to embrace SC practices, focusing on omnichannel strategies, SC coordination, and technologies such as artificial intelligence systems, big data and machine learning, and mobile applications. Results: Our findings revealed that firms facing disruption in a single performance area can apply specific strategies to maintain resilience. However, multiple areas of underperformance necessitate a varied approach. Conclusions: According to our empirical analysis, omnichannel strategies are critical when disruptions simultaneously impact quality, inventory, sales, and ROI, particularly during major disruptions such as the COVID-19 pandemic. AI and big data become vital when multiple risks coalesce, enhancing areas such as customer service and supply chain visibility. Moreover, supply chain coordination and mobile app adoption are effective against individual performance risks, proving crucial in mitigating disruption impacts across various business aspects. These findings help policy-makers and business owners to have a better understanding of how business continuity based on performance resistance to disruptions pushes companies to adopt different practices including new technologies and supply chain coordination. Accordingly, they can use the outputs of this study to devise strategies for improving resilience considering their supply chain vulnerabilities. Full article

Background: Increased maritime trade has led to a surge in drayage operations, causing congestion and environmental issues in port areas. Truck Appointment Systems (TASs) are commonly used to manage truck arrival rates, yet transparency and equity in slot allocation remain problematic, fostering distrust between Licensed Motor Carriers (LMCs) and Marine Terminal Operators (MTOs). Methods: This study proposes a polycentric approach to improve truck scheduling and ensure that those impacted by decisions are involved in the decision-making process. A single-round auction mechanism focused on optimizing the truck hauling process through a pricing policy that promotes sincere bidding is introduced. The proposed approach employs an optimization strategy to achieve equitable coordination in truck synchronization through means of adaptable capacity management. Results: Numerical experiments assessing scenarios of noncollaborative behavior against partial collaboration between MTOs and LMCs demonstrate the effectiveness of the proposed approach in enhancing user satisfaction and terminal conditions for a case study focused on a medium-sized terminal. Collaboration between trucking companies is shown to increase utility per monetary unit spent on slot acquisition. Conclusions: The polycentric strategy offers a solution to TAS limitations by ensuring stakeholder participation with respect to flexibility and transparency by ensuring that those impacted by decisions are involved in the decision-making process. Full article

Background: The coffee industry is one of the most important world supply chains, with an estimated consumption of two billion cups daily, making it the most consumed beverage worldwide. Coffee beans are primarily grown in tropical countries, with Brazil accounting for almost 50% of the production. The objective of this study is to examine the Brazilian trade between 2018 and 2022, focusing on state producers, logistical corridors, and importer countries. Methods: The methodology approach revolves around a quantitative method using Social Network Analysis measures. Results: The results reveal a massive concentration in local production (99.5%—Minas Gerais), port movements (99.9%—Santos, Itaguai, and Rio de Janeiro), and country buyers (80.9%—the United States, United Kingdon, and Japan). Conclusions: The study concludes that the Brazilian green coffee supply chain relies on a fragile and overloaded logistical network. Due to that, this study indicates that the stakeholders and decision-makers involved must consider this high concentration of production in some areas and companies. They must also address the bottlenecks in logistical corridors and the fierce competition involved in acquiring and processing Brazilian coffee production because these factors can drastically affect the revenue of the companies operating in this sector. Full article

Background: Effective humanitarian logistics (HL) is essential in disaster response. The “Internet of Things” (IoT) holds potential to enhance the efficiency and efficacy of HL, yet adoption is slowed by numerous barriers. Methods: This study employs interpretive structural modeling (ISM) and decision-making trial and evaluation laboratory (DEMATEL) to explore and classify barriers to IoT integration in HL. Results: A total of 12 barriers were identified, classified, and ranked according to their driving power and dependence. Key barriers include lack of standardization, organizational resistance, data quality issues, and legal challenges. Conclusions: Overcoming these barriers could significantly improve relief operations, reduce errors, and enhance decision-making processes in HL. This investigation is the first of its kind into IoT barriers in HL, laying the groundwork for further research and providing valuable insights for HL managers. Full article

Background: The global logistics industry is facing looming challenges related to labor shortages and low-efficiency problems due to the lack of logistics facilities and resources, resulting in increased logistics delays. The Physical Internet is seen as a way to take logistics into the next generation of transformation. This research proposes a Physical Internet-enabled system that allows multiple companies to efficiently share warehouses and trucks to achieve operational efficiency and reduce CO₂ emissions. Methods: We propose a novel demography-weighted combinatorial optimization model utilizing a genetic algorithm and the Lin–Kernighan heuristic. The model is tested with real data simulations to evaluate its performance. Results: The results show that compared to the existing model presented in a previous study, our proposed model improves location optimality and distributive routing efficiency and reduces CO₂ emissions by 54%. Conclusions: By providing a well-founded novel model, this research makes an important contribution to the implementation of the Physical Internet by computing optimal logistics hubs and routes as well as providing a solution to cut CO₂ emissions by half. Full article

Background: The pulp and paper industry (P&PI) is undergoing significant disruption driven by global megatrends that necessitate advanced tools for predicting future behavior and adapting strategies accordingly. Methods: This work utilizes a multi-criteria framework to quantify the effects of digitalization, changes in social behavior, and sustainability as three major megatrends transforming the P&PI industry, with a specific focus on hygiene tissue products. Thus, the research combines a comprehensive literature review, insights from a Delphi study, and topic modeling to qualitatively and quantitatively assess the present and future impacts of these global megatrends. Results: The findings suggest an urgent need to identify alternative raw materials to prevent potential supply chain disruptions. Moreover, due to shifts in social behavior, it becomes critical for businesses to substantiate their sustainability claims with hard data to avoid the risk of a “greenwashing” perception among consumers. Conclusions: This study provides decision support for strategic planning by highlighting actionable insights, quantitative predictions, and trend analysis, alongside the examination of consumer and market trends. It aims to incorporate diverse stakeholder perspectives and criteria into decision-making processes, thereby enriching the strategic planning and sustainability efforts within the P&PI industry. Full article

Background: This literature review delves into the concept of ‘Third-party Reverse Logistics selection’, focusing on its process and functionality using deterministic and uncertain decision-making models. In an increasingly globalized world, Reverse Logistics (RL) plays a vital role in optimizing supply chain management, reducing waste, and achieving sustainability objectives. Deterministic decision-making models employ predefined criteria and variables, utilizing mathematical algorithms to assess factors such as cost, reliability, and capacity across various geographical regions. Uncertain decision-making models, on the other hand, incorporate the unpredictability of real-world scenarios by considering the uncertainties and consequences of decision making and choices based on incomplete information, ambiguity, unreliability, and the option for multiple probable outcomes. Methods: Through an examination of 41 peer-reviewed journal publications between the years 2020 and 2023, this review paper explores these concepts and problem domains within three categories: Literature Reviews (LR), Deterministic Decision-Making (DDM) models, and Uncertain Decision-Making (UDM) models. Results: In this paper, observations and future research directions are discussed. Conclusions: This paper provides a comprehensive review of third-party reverse logistics selection papers. Full article

Background: Exchangeable item repair systems are inventory systems. A nonfunctional item is exchanged for a functional item and returns to the system after being repaired. In our periodic review setting, repair is performed either in-house or outsourced. When repair is in-house, a repaired item is returned to stock regardless of the repair status of the other items in its order. In contrast, with outsourced repair, the entire order must be repaired for it to return to stock. Methods: We develop formulas for the window fill rate (probability for a customer to be served within a given time window) to measure the system’s performance and compute it for each repair model. The cost of outsourcing is the difference between the number of spares needed to maintain a target performance level when repair is internal and when it is outsourced. Results and Conclusions: In our numerical example, we show that the window fill rate in both models is S-shaped in the number of spares and show how the graph shifts to the right when customer tolerance decreases and order cycle time increases. Further, we show that the cost of outsourcing is increasing with customer tolerance and with the target performance level. Full article