Advanced

Cost models of inbound logistics activities: supporting production system design

Windmark, Christina LU and Andersson, Carin LU (2015) In International Journal of Supply Chain and Operations Resilience 1(2). p.181-200
Abstract
To make good corporate strategy decisions, it is important to have

reliable data. When making relocation decisions, it is important to know not

only the manufacturing cost but also the production cost, cost model including

the cost drivers of the whole production system. This paper presents two cost

models of inbound logistics, one to estimate the costs in a current production

system in detail and one for rougher estimation of the costs in a new system.

The models were developed and tested at two suppliers to the heavy vehicle

industry. The models are limited to storage and handling of pallets or different

kinds of containers, giving the cost per part by use of a... (More)
To make good corporate strategy decisions, it is important to have

reliable data. When making relocation decisions, it is important to know not

only the manufacturing cost but also the production cost, cost model including

the cost drivers of the whole production system. This paper presents two cost

models of inbound logistics, one to estimate the costs in a current production

system in detail and one for rougher estimation of the costs in a new system.

The models were developed and tested at two suppliers to the heavy vehicle

industry. The models are limited to storage and handling of pallets or different

kinds of containers, giving the cost per part by use of a pallet equivalent, a

newly developed cost allocation parameter. The results indicate that the share

of inbound logistics costs is 11–21% of the manufacturing cost plus the cost of

internal material handling, indicating that it is an important cost factor. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
relocation decision, material handling, logistic activities, inbound logistics costs, production decision support, production system design, location decision.
in
International Journal of Supply Chain and Operations Resilience
volume
1
issue
2
pages
19 pages
publisher
Interscience Communications
ISSN
2052-8698
DOI
10.1504/IJSCOR.2015.069927
language
English
LU publication?
yes
id
adeeee4d-82dc-40d3-b8d7-e30c36166f55 (old id 4533508)
date added to LUP
2014-09-23 11:46:26
date last changed
2016-10-12 16:26:15
@article{adeeee4d-82dc-40d3-b8d7-e30c36166f55,
  abstract     = {To make good corporate strategy decisions, it is important to have<br/><br>
reliable data. When making relocation decisions, it is important to know not<br/><br>
only the manufacturing cost but also the production cost, cost model including<br/><br>
the cost drivers of the whole production system. This paper presents two cost<br/><br>
models of inbound logistics, one to estimate the costs in a current production<br/><br>
system in detail and one for rougher estimation of the costs in a new system.<br/><br>
The models were developed and tested at two suppliers to the heavy vehicle<br/><br>
industry. The models are limited to storage and handling of pallets or different<br/><br>
kinds of containers, giving the cost per part by use of a pallet equivalent, a<br/><br>
newly developed cost allocation parameter. The results indicate that the share<br/><br>
of inbound logistics costs is 11–21% of the manufacturing cost plus the cost of<br/><br>
internal material handling, indicating that it is an important cost factor.},
  author       = {Windmark, Christina and Andersson, Carin},
  issn         = {2052-8698},
  keyword      = {relocation decision,material handling,logistic activities,inbound logistics costs,production decision support,production system design,location decision.},
  language     = {eng},
  number       = {2},
  pages        = {181--200},
  publisher    = {Interscience Communications},
  series       = {International Journal of Supply Chain and Operations Resilience},
  title        = {Cost models of inbound logistics activities: supporting production system design},
  url          = {http://dx.doi.org/10.1504/IJSCOR.2015.069927},
  volume       = {1},
  year         = {2015},
}