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Logistics models for evaluating the efficiency of goods movement

Author

Listed:
  • Iryna Shvarts
  • Oksana Bezsmertna
  • Alla Kraevska

Abstract

The article deals with an important applied problem of logistics management - evaluating the efficiency of goods movement. Given the importance of the problem of managing material flows at enterprises and constant changes in the conditions of the organization of supply chains, this topic is very relevant. In the conditions of the restructuring of many logistics supply chains, it is necessary to apply the following models for evaluating the movement of goods, which will take into account the most important criteria. In particular, a significant impact on the reconstruction of logistics chains and patterns of goods movement was made as a result of military operations in part of the territory of our country. Thus, the question arises of evaluating the effectiveness of new schemes of goods movement, taking into account new criteria. With this in mind, we included annual operating costs, annual transport costs, total capital investments, and the payback period of the project as part of the proposed distribution system selection model. The proposed model makes it possible to compare two distribution systems and choose the best one. The next task in the field of goods movement was the task of determining the coordinates of the distribution center, taking into account such parameters as the distance to the consumer and the traffic of distribution centers. The model for determining the coordinates of the distribution center proposed in the article makes it possible to take into account the changing factors of the external environment as much as possible and to choose the location of the distribution center that saves on transport costs, since the minimum distance and number of deliveries are ensured. The article also presented a graphic justification of the location of the distribution center.In order to maintain the appropriate level of quality of the logistics system of Ukrainian enterprises, the model for determining the level of logistics service was substantiated in the article. To assess the level of logistics service, we compared the time for logistics services that are actually provided by the firm with the time that would have to be spent on providing the entire set of possible services. All considered logistical tasks provide an opportunity to make effective management decisions regarding the organization of material flows at the enterprise

Suggested Citation

  • Iryna Shvarts & Oksana Bezsmertna & Alla Kraevska, 2022. "Logistics models for evaluating the efficiency of goods movement," Innovation and Sustainability Articles, Innovation and Sustainability, vol. 2(3), pages 59-64, August.
  • Handle: RePEc:cve:innsjn:v:2:y:2022:i:3:p:59-64
    DOI: https://doi.org/10.31649/ins.2022.3.59.64
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