Decision-making management for improvement of the logistics system

Inna Kuznetsova
Doctor of Economics, Professor, Head of Management Department, Odessa National Economic University, Ukraine, e-mail: inna.stream@ukr.net, ORCID ID: https://orcid.org/0000-0003-3017-6165

Yulia Karpenko
PhD in Economics, Associate Professor, Department of Management, Odessa National Economic University, Ukraine, e-mail: uliauliavk@gmail.com, ORCID ID: https://orcid.org/0000-0002-1144-3910

Andriy Repin
Logistics Specialist, Aquafrost LLC, Ukraine, e-mail: andrew_294@ukr.net

Cite this article:

Kuznetsova, I., Karpenko, Yu., Repin, A. (2020). Decision-making management for improvement of the logistics system [Pryiniattia upravlinskykh rishen z udoskonalennia lohistychnoi systemy], Socio-economic research bulletin; Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 2 (73), pp. 136–149.

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.

Keywords

decision making; logistics system; decision criterion; logistics system evaluation indicators; integrated indicator.

JEL classification: M100; M110; DOI: https://doi.org/10.33987/vsed.2(73).2020.136-149

UD classification: 338.512:658.7:621

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References

1. Ansoff, I. (1989). Strategic management. Trans. from Eng. E. L. Leontyeva, E. N. Stroganov, E. V. Vyshinskaya et al. [Strategicheskoe upravlenie; per. s angl. E. L. Leonteva, E. N. Stroganov, E. V. Vyshinskaya i dr.], Ekonomika, Moskva, 519 s. [in Russian]
2. Gig, Dzh. (1981). Applied general system theory. Trans. from Eng. B. G. Sushkova, V. S. Tyukhtina [Prikladnaya obshchaya teoriya system; per. s angl. B. G. Sushkova, V. S. Tyukhtina], Mir, Moskva, 733 s. [in Russian]
3. Petrunya, Yu. Ye., Litovchenko, B. V., Pasichnyk, T. O. et al. (2015). Decision-making management. 3rd ed. [Pryiniattia upravlinskykh rishen; za red. Yu. Ye. Petruni], Universytet mytnoi spravy ta finansiv, Dnipropetrovsk, 209 s. [in Ukrainian]
4. Saati, T. (1993). Decision making: hierarchy analysis method. Trans. from Eng. R. G. Vachnadze [Prinyatie resheniy: metod analiza ierarkhiy; per. s angl. R. G. Vachnadze], Radio i svyaz, Moskva, 278 s. [in Russian]
5. Hammond, J., Keeney, R., Raiffa, H. (2016). Right choice. A practical guide to making better decisions [Pravilnyy vybor. Prakticheskoe rukovodstvo po prinyatiyu vzveshennykh resheniy], Mann, Ivanov i Ferber, Moskva, 203 s. [in Russian]
6. Tinsley, C. H., Dillon, R. L., Medsen, P. M. (2019). How to avoid catastrophe. About making smart decisions [Yak unyknuty katastrofy. Pro pryiniattia rozumnykh rishen], 10 naikrashykh statei iz zhurnalu Harvard Business Review, KM-BUKS, Kyiv, s. 49–68 [in Ukrainian]
7. Korovina, O. (2016). Improving the methodological approach to management decision-making in innovation activity [Udoskonalennia metodychnoho pidkhodu pryiniattia upravlinskoho rishennia v innovatsiinii diialnosti], Zbirnyk naukovykh prats Bukovinskoho universytetu, Seriia: Ekonomichni nauky, Vyp. 12, s. 59–70 [in Ukrainian]
8. Obidyennova, T. S., Gusarov, O. O., Antiptseva, O. Yu. (2019). Methods of making managerial decisions in terms of development, implementation and operation of information security management system [Metody pryiniattia upravlinskykh rishen v umovakh rozroblennia, vprovadzhennia ta funktsionuvannia systemy menedzhmentu informatsiinoi bezpeky], Problemy systemnoho pidkhodu v ekonomitsi, Vyp. 2 (70), Ch. 1, s. 153–157. DOI: https://doi.org/10.32782/2520-2200/2019-2-23 [in Ukrainian]
9. Kuznetsova, I. O. (2014). Engineering in the management process of enterprise activity [Inzhynirynh v protsesi upravlinnia diialnistiu pidpryiemstva], Visnyk sotsialno-ekonomichnykh doslidzhen, No. 1 (52), s. 216–223 [in Ukrainian]
10. Kuznetsova, I., Sokurenko, I. (2019). Technology of decision-making management [Tekhnolohiia pryiniattia upravlinskykh rishen], Naukovyi visnyk Odeskoho natsionalnoho ekonomichnoho universytetu, No. 5 (268), s. 169–188. DOI: 10.32680/2409-9260-2019-5-268-169-188 [in Ukrainian]
11. Bowersox, D. D., Closs, D. D. (2008). Supply chain logistics management. 2nd ed. Trans. from Eng. N. N. Baryshnikova, B. S. Pinsker [Logistika: integrirovannaya tsep postavok; per. s angl. N. N. Baryshnikovoi, B. S. Pinsker], Olimp-Biznes, Moskva, 640 s. [in Russian]
12. Stock, J. R., Lambert, D. M. (2005). Strategic logistics management. Trans. from Eng. [Strategicheskoe upravlenie logistikoy; per. s angl.], INFRA-M, Moskva, 797 s. [in Russian]
13. Osipenko, S. M. (2013). Management of efficiency of the enterprise logistic activity on the basis of the factor-operational approach [Upravlinnia efektyvnistiu lohistychnoi diialnosti pidpryiemstva na osnovi faktorno-operatsiinoho pidkhodu], Logistika: problemy i resheniya, No. 1 (44), s. 85–89 [in Ukrainian]
14. Frolova, L. V. (2005). The mechanism of logistics management of a commercial enterprise: monograph [Mekhanizm lohistychnoho upravlinnia torhovelnym pidpryiemstvom: monohrafiia], DonDUET, Donetsk, 322 s. [in Ukrainian]
15. Chornopyska, N. V. (2008). Methodical approaches to evaluating of the enterprise logistics activity [Metodychni pidkhody otsiniuvannia lohistychnoi diialnosti pidpryiemstva], Visnyk Natsionalnoho universytetu «Lvivska politekhnika», No. 623: Lohistyka, s. 265–271 [in Ukrainian]
16. Sumets, O. M. (2014). The system of evaluation indicators of the enterprise logistics activity efficiency [Systema otsinnykh pokaznykiv efektyvnosti lohistychnoi diialnosti pidpryiemstva], Visnyk Odeskoho natsionalnoho universytetu. Seriia: Ekonomika, T. 19, Vyp. 3 (2), s. 230–234 [in Ukrainian]
17. Ananko, I. M. (2014). Estimation of efficiency of the logistic systems functioning on the trucking enterprise [Otsinka efektyvnosti funktsionuvannia lohistychnykh system na ATP], Ekonomika transportnoho kompleksu, No. 24, s. 125–138 [in Ukrainian]