Decision-making management for improvement of the logistics system

Authors

DOI:

https://doi.org/10.33987/vsed.2(73).2020.136-149

Keywords:

decision making, logistics system, decision criterion, logistics system evaluation indicators, integrated indicator

Abstract

Theoretical and practical principles on the criteria for decision-making management for improvement of the logistics system are the subject of research in the article. The expediency of using indicators for assessing the state of the logistics system as a criterion for making decisions on its improvement is proved. The appropriateness of subordination of the evaluation’s stage of the logistics system of the enterprise’s performance management process is established. Based on a critical review of the scientific literature, the range of indicators for assessing the functioning of the logistics system includes: turnover of logistics assets, reliability of deliveries, timeliness of deliveries, level of stocks, capacity utilization of vehicles, level of logistics costs, deficit probability. Using the method of pairwise comparisons made it possible to establish the proportion of indicators of the functioning of the logistics system and to determine their direction. The integrated indicator of the logistics system functioning is substantiated. The proposed decision-making criterion was tested at a fish processing enterprise. The problematic components of integrated indicator of the enterprise’s logistics system functioning are analyzed. The use of the optimal batch supply model made it possible to increase the capacity utilization of vehicles and reduce the level of logistics costs. The attention is focused on integration processes and provision of information flows between logistics services. The attention is focused on integration processes and ensuring of information flows between logistics services. The main business processes of the logistics system are highlighted, which include: formation of sales policy, product delivery schedules, sales budget; initiation of the process of shipping products to the client; delivery of products to customers; formation of analytics for existing and potential clients; work with complaints and reclamations; proposals to the sales policy of the enterprise. The scheme of business processes of the logistics system is proposed, which allows you to determine information flows, to establish functional relationships between departments of the logistics system with other divisions of organizational structure of an enterprise and to reduce the speed of information to the decision maker.

Author Biographies

Inna Kuznetsova, Odessa National Economic University

Doctor of Economics, Professor, Head of Management Department

Yulia Karpenko, Odessa National Economic University

PhD in Economics, Associate Professor, Department of Management

Andriy Repin, Aquafrost LLC

Logistics Specialist

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Published

2020-06-28

Issue

Section

Management and business administration