Costs of inbound logistics – Towards a decision support model for production system design

Summary, in English

Global competition forces companies to constantly increase the efficiency in their production systems. One important factor affecting the production performance is the inbound materials handling system. When designing or relocating a manufacturing system, the cost of the material handling system is one of many things to take into consideration. In connection with on-going research a comprehensive decision support for production location, both work procedures and model and tools for strategic and economic analyses are developed. A case study was conducted, at a supplier to the heavy vehicle industry, in order to develop cost models for inbound logistics. The results were two cost models of different accuracy giving the cost per part, where the comprehensive model is taking the process and equipment into consideration. In addition, the study also revealed the proportion between inbound logistics costs and assembly costs at the company studied. The result in this article is part of the development of making models for calculating the total production part cost.

• Author: Christina Windmark; Carin Andersson
• Editor: Américo Azevedo
• Department/s: Production and Materials Engineering; SPI: Sustainable Production Initiative
• Publishing year: 2013
• Language: English
• Pages: 1049-1061
• Publication/Series: Advances in Sustainable and Competitive Manufacturing Systems.
• Links: http://dx.doi.org/10.1007/978-3-319-00557-7_86
• Document type: Conference paper
• Publisher: Springer
• Topic: Materials Engineering
• Keywords: INBOUND LOGISTICS COSTS; LOGISTIC ACTIVITIES; MATERIAL HANDLING; PRODUCTION SYSTEM DESIGN; PRODUCTION DECISION SUPPORT; RELOCATION DECISION; LOCATION DECISION
• Conference name: Flexible Automation and Intelligent Manufacturing, FAIM2013
• Conference date: 2013-06-26
• Conference place: Porto, Portugal
• Status: Published