Integrated operational transportation planning in practice


External procurement, also known as outsourcing, means that a company transfers the fulfillment of some items, such as vendor parts or services, to a third party [50]. The rest of vendor parts or services is fulfilled using own resources. In such a case, each article or each service has to be assigned for execution either to the own deployment or to an outside supplier. However, this decision is not reduced to ‘either-or’ in the sense of ‘make-or-buy’ for each article or service within an isolated comparison by predetermined criteria. Fulfillment costs depend on the entire allocation. I.e., in order to calculate the fulfillment costs for a single item, a mapping of all other items has to be provided. Hence, the simple traditional ‘make-or-buy’ decision evolves into a reference analysis among all the articles or services involved [116]. A major impact of such an analysis is noticed in the level and the structure of costs in the outsourcing enterprise [118].


Vehicle Route General Packet Radio Service Tour Length Transportation Capacity Direct Transportation 
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© Betriebswirtschaftlicher Verlag Dr. Th. Gabler | GWV Fachverlage GmbH, Wiesbaden 2008

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