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Integrated operational transportation planning in practice

Abstract

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].

Keywords

Vehicle Route General Packet Radio Service Tour Length Transportation Capacity Direct Transportation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Betriebswirtschaftlicher Verlag Dr. Th. Gabler | GWV Fachverlage GmbH, Wiesbaden 2008

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