Choosing the logistics chain structure for deliveries of bulk loads: case study of the Republic Kazakhstan

Abstract

Purpose. The paper aims to develop the methodology for choosing the best available structure of a logistics chain for deliveries of bulk cargoes. Methodology. The systematic approach is used to formalize the problem of choosing the optimal structure of a logistics chain: the total expenses are used to define the goal function, alternative logistics chain structures and numeric parameters of the request flow (the delivery distance and the consignment weight) are defined as control variables, and the random variables representing technological parameters of servicing processes are used to consider the influence of the environment on the logistics chain. The mathematical model defines the functional dependence of the total expenses on the entities within the delivery chain on the request flow parameters for two alternative structures: the delivery with transshipment in one freight terminal and the delivery through two terminals. By using functional analysis, we define the ranges of the request flow parameters where the use of a given logistics chain structure is characterized by minimal total expenses. Findings. The experimental studies conducted considering two alternative logistics chain structures have shown that the better solution varies depending on the values of the request parameters. It allowed us to state that the ranges of the numeric parameters of the request flow may be defined to substantiate the optimal logistics chain structure for deliveries of bulk loads. Originality. The dependencies of the total logistics expenses on the delivery distance and the consignment weight as the parameters of the flow of requests for bulk cargo transportation have been defined in the paper for the first time. Practical value. The proposed methodological approach can be used by freight forwarders to substantiate the best option out of available alternative structures of a logistics chain for deliveries of loads with the given delivery distance and the consignment weight.