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The impact of freight transport capacity limitations on supply chain dynamics

Spiegler, Virginia L. M. ORCID: https://orcid.org/0000-0002-7130-3151 and Naim, Mohamed Mohamed ORCID: https://orcid.org/0000-0003-3361-9400 2014. The impact of freight transport capacity limitations on supply chain dynamics. International Journal of Logistics Research and Applications 17 (1) , pp. 64-88. 10.1080/13675567.2013.838012

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Abstract

We investigate how capacity limitations in the transportation system affect the dynamic behaviour of supply chains. We are interested in the more recently defined, ‘backlash’ effect. Using a system dynamics simulation approach, we replicate the well-known Beer Game supply chain for different transport capacity management scenarios. The results indicate that transport capacity limitations negatively impact on inventory and backlog costs, although there is a positive impact on the ‘backlash’ effect. We show that it is possible for both backlog and inventory to simultaneous occur, a situation which does not arise with the uncapacitated scenario. A vertical collaborative approach to transport provision is able to overcome such a trade-off.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HE Transportation and Communications
Uncontrolled Keywords: supply chain dynamics, ‘backlash’ effect, transport capacity, vertical collaboration, system dynamics simulation
Publisher: Taylor & Francis
ISSN: 1367-5567
Date of First Compliant Deposit: 30 March 2016
Date of Acceptance: 14 August 2013
Last Modified: 06 May 2023 19:51
URI: https://orca.cardiff.ac.uk/id/eprint/51718

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