MAGAZINE  №4 (99) August 2020


CATEGORY Logistics service management Optimization and mathematical modelling Supply chain planning



The current state of management practice is characterized by the presence of a demand to improve the efficiency and effectiveness of logistics processes, on the one hand, and an insufficient level of application of one of the main tools for achieving this goal – optimization modeling, on the other. One of the main reasons of this phenomenon is the lack of a universal basis of the proposed optimization models that does not allow them to be applied widely enough in companies with different business process structures. The aim of the research was to develop a universal, based on the SCOR framework, integrated model for optimizing the logistics service of an enterprise. During the research process, the overview of the developed models for logistics service optimization, the analysis of the limitations of the logistics system optimization models, the adaptation of the map of SCOR process metrics have been carried out; the influence diagram of the optimization model components has been developed; the models of cost optimization and logistics service optimization have been combined into a single integrated optimization model; an algorithm for the optimal solution search has been elaborated; the implementation of the model and algorithm as a program for the solution search has been introduced. As a result, the integrated optimization model based on the components of the SCOR model has been developed, combining the cost and service level optimization models, using the outputs of one model as inputs for another when searching for an optimal solution. Building the optimization model on the basis of the SCOR model components provides universal character of its application, taking into account the set of costs, arising in a logistics system, including indirect ones, and the set of metrics of logistics service reflects the links between functional departments, the ability to maintain a level of total costs at the efficiency frontier, achieving the goal of the profit maximization at the same time, provides a link between the tactical and operational levels of decision-making, which together leads to an increase in the reasonableness and quality of management decisions, and creates prerequisites for the overall optimal functioning of an enterprise logistics system.


 Electronic version

 Keywords:  SCOR optimization Optimization Models optimization modeling logistics service logistics costs logistics processes business process metrics performance indicators KPI

MAGAZINE  №5 (94) October 2019


CATEGORY  Analysis in logistics and SCM Controlling Modern concepts and technologies in logistics and SCM



 The article is devoted to Activity Based Costing as one of the effective methods of logistic costs optimization in supply chain and business management. Modern ideas of management are based on the fact that business needs to be clearly defined, measured, analyzed and improved. The method of the Activity Based Costing (ABC) is one of possible methods.
Being one of the types of economic analysis, ABC, the essence of which lies in the object system research (products, process, structure), is aimed at optimizing the ratio between consumer properties and costs of its creation and usage.
ABC method proceeds from the fact that there are extra costs in any production, in any production, technical and economic system, and, subsequently, there is room for improvement. The task of the analysis is to find reserves to reduce production and operation of products costs on the basis of specific methods and research procedures. ABC method allows, when creating new products, to prevent extra costs and also to provide the level of expenses that does not exceed the established one, when using the created object, reduce or exclude economically unjustified costs.

 Electronic version

 Keywords:  logistic costs Logistics Level Costs management accounting cost management cost cutting cost minimization activity based costing ABC business process Business Process Reengineering

Published in Controlling

MAGAZINE №2(85) April 2018

AUTHOR Levina T.V.

CATEGORY Analysis in logistics and SCM Supply chain planning


The task of diagnostics of supply chain processes with the purpose to determine reserves and prospects of efficiency increase is the most time-consuming stage of strategic planning requiring accumulation and systematization of large amount of diverse information. Alongside with this, there are not many complex methods that could allow to implement the strategic planning cycle providing at the same time objective conclusions. One of these methods is the diagnostics of supply chain processes using supply chain operations reference model (SCOR model). The article provides analysis of publications devoted to problems when using SCOR; shows the main problems of the method interpretation and its application peculiarities. Also, the article suggests a procedure of supply chain processes diagnostics with SCOR model; the stages of this procedure are supported with an example. The article reveals that consistent implementation of the described stages allows to significantly simplify the procedure of supply chains strategic analysis providing at the same time consistency and reasonability of the decisions taken.  

 Electronic version


MAGAZINE  №3 (56) June 2013

AUTHOR  Shmatalyuk A.E., Petrunya N.

CATEGORY Logistics integration and coordination Modern concepts and technologies in logistics and supply chain management Planning the supply chain Corporate logistics industrial companies 


It is shown that in recent years the increasing number of the companies introduces in the production activity process of Sales and Operations Planning - S&OP. The purpose of this process – to balance demand with production and logistic operations, having synchronized thus operational and financial planning, and also to connect strategic planning with daily operating activities.

The example of realization of process of S&OP at the large metallurgical enterprise - "Aubert&Duval" is given.




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