Impact of safety stock parameters on warehousing and transportation costs－Case study on company S

• Main Authors: Chien-Kuo Chung, 鍾建國
• Other Authors: S. P. Wang
• Format: Others
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/28645240159681960871

碩士 === 長庚大學 === 管理學院碩士學位學程在職專班經營管理組 === 101 === Due to the recent rise of oil prices, freight continues to increase for shipping goods either by sea or by air, which mainly depends on the inventory levels and the length of product delivery time. The case company runs an international business on electric and electronic components, it is thus important to trade off the delivery time and the costly freight while shipping goods worldwide. In this study the total logistics costs include transportation, shortage, and holding costs. On the first condition assuming 100% monthly delivery rate and the second condition that the annual delivery rate is 100%, this thesis applies the sensitivity analysis method to investigate the relationship among the product shipment time, the inventory levels and the choices of safety stock parameters, while the lowest total logistics costs are achieved. Research results show that, on condition 1, safety stock parameters influence the total logistics costs, and the associated driving force is the length of delivery time, instead of the product price. In the case of condition 2, this study concludes the logistics costs of products with shorter shipment time can be even lowered by reducing their holding cost; for the products with long delivery time, their logistics cost could be reduced by decreasing the airfreight charged.