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The impact of freight transport capacity limitations on supply chain dynamics

Spiegler, Virginia L. M. and Naim, Mohamed Mohamed 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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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: 25 Feb 2019 16:00

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