Investigating the impact of demand amplification on freight transport |
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Authors: | Andrew Potter Chandra Lalwani |
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Affiliation: | aLogistics Systems Dynamics Group, Cardiff Business School, Cardiff University, Colum Drive, Cardiff CF10 3EU, United Kingdom;bLogistics Institute, Business School, The University of Hull, Cottingham Road, Hull HU6 7RX, United Kingdom |
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Abstract: | Despite freight transport operations being influenced by supply chain dynamics, there has been only a very limited investigation into the impact of demand amplification on this function, with almost no analytical research. This paper aims, through spreadsheet simulation of a generic production control system, to quantify the impact of demand amplification on transport performance. Performance measures evaluated include both transport cost and efficiency. The results in general find a negative relationship between transport performance and demand amplification. It is also found that the ratio of vehicle capacity to average demand affects these results. |
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Keywords: | Bullwhip Simulation System dynamics Distribution Logistics |
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