Advances in Economics, Business and Management Research, volume 47

International Scientific Conference "Far East Con" (ISCFEC 2018)

Time Effect in Logistics

Yu. O. Glushkova L. O. Serdyukova
Yuri Gagarin State Technical University of Saratov Yuri Gagarin State Technical University of Saratov
Saratov, Russia Saratov, Russia
e-mail: [email protected] e-mail: [email protected]

O. Yu. Gordashnukova A.V. Pahomova

Yuri Gagarin State Technical University of Saratov Yuri Gagarin State Technical University of Saratov
Saratov, Russia Saratov, Russia
e-mail: [email protected] e-mail: [email protected]

Abstract— The article presents the results of a theoretical study step-by-step algorithm used to determine the comparable
relating the efficiency of indicators of road traffic vehicles as the indicators.
basis for solving a new problem connected with development of a The goal of the work is to show that application of the
model needed to correct the effort measurements of the model of corrective estimates to the characteristics of
participants in the international supply chains. The necessity for transportation in the logistics services in the form of the time
application of the proposed recommendations to the analysis and
coefficient of the running time of a vehicle allows us to
control of transportation services has been justified. The
distinctive feature of the given recommendations consists in describe and simulate the numerical changes in the transport
providing an objective account of transportation services based operations, and the amount of transportation services
on the travelling time factor which ensures comparability of the depending on the values of the given coefficient.
indicators. We also achieved our research goal to simulate the To achieve the goal, it is necessary to solve a new
changes in the transportation services and the amount of problem, and therefore, simulate a new model for correction of
transport operations depending on the values of the given transportation ratings through interaction of the participants in
coefficient. The basic principles of our study include the method the logistics process. The given model might be used in the
of substitution chains, including the index and comparative analysis and monitoring of the process of transportation
approaches. The objective of the research was to develop a flow services. Utilization of the model ensures more objective
chart and algorithm in order to calculate the correction estimates of the transportation operations by comparing the
coefficient and transportation volumes. The given algorithm was rates accepted for calculation and analysis.
used to test the proposed recommendations in the form of
numerical simulations applied to the road vehicle enterprises in Ease of Use The practical outcome of the conducted
Saratov region. Application of the recommended indicators study demonstrates that application of the proposed model for
provide the advantages relating the starting points of the analysis improving the quality of transportation operations allows for
based on the scale and performance characteristics. It is upgrading the reliability of the source data when planning the
proposed to form the "time window" as a tool in regulating the amount of transportation indicators, the efficiency of labor,
pace and distribution of responsibility in the supply chain.
transport costs and improve the utilization of the road traffic
vehicles through improvement of the ratio of the travelling
Keywords— transport service, logistics, time factor, road traffic time and the standing time during the loading, unloading and
vehicles. operations related with the logistics services [1].
Methods. The given research is based on the works of the
1. INTRODUCTION Russian [1,2,3, 6,7,8,9,10,12,16,17,22,23,25] and foreign
One of the reasons for poor coordinating activities scholars [11,15,26], including such methods as the chain
between the participants in the logistics process and the substitutions, index and comparative methods. Creation of the
subdivisions of an enterprise, which are responsible for model for improvement of the estimates is presented as a step-
organization of the transportation process, and the load by-step process which consists of the description of the current
discharge process as the initial/tail-end operation, including state of transportation services by means of operational and
logistics services, is the insufficient theoretical and practical volumetric indicators of the transportation process
elaboration of the issues relating effective utilization of the interconnected by the functional inter-dependence and
working time, particularly, time of the service order for road transition to estimation periods.
vehicles. As a result, the enterprises lose in traffic volumes The importance and topicality of the research is
and, accordingly, lose their income and profits. In this article, connected with the need to increase the efficiency of road
we have developed a methodology used to develop a model traffic vehicles in the logistics process is, on the one hand, due
for correction estimates of the transportation rating based on a to the increase in the transportation costs promoted by the
rising costs of the operation resources, and on the other, to

Copyright © 2019, the Authors. Published by Atlantis Press.

This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/). 24
 Advances in Economics, Business and Management Research, volume 47

toughening of the requirements for the terms, quality, and and include additional works and operations which are an
reliability of the delivery services. inherent part of the transportation process at the departure
In the opinion of Lauri Ojala and Harri Lorentz [26], the point, and further continued and finalized at the point of
level of the logistics competence in Germany, Sweden, destination (forwarding, business and legal, and information-
Norway, Finland and Denmark is rated in the top 10% of the consulting services).
166 countries surveyed in the World Bank’s LPI. Poland,
Estonia, Latvia and Lithuania are rated within the top 1/3, 2. METHODS
while Russia is just below.
In spite of numerous studies in the field of organization, Numerical simulation was conducted for the model
planning and analysis of transportation operations carried out object, characteristic for motor transport enterprises in Saratov
in different years [16,17,18,19,20,21], there remain a set region. The calculation pattern can be presented as a sequence
issues related with the logistics approach to transportation of steps in time to determine the transport operations and the
services. Thus, there is a need fo9r the scientific approach to correction coefficient the travel time share in the overall time
the ways and methods used to identify the reserves for of the work order (Figure 1). The calculations were carried out
reducing unproductive expenditures and increasing for the planning periods 1 and 2. The results of the
productivity labour in international supply chains through calculations are given in Table 2.
restriction of the working hours. The motor transport To calculate the defining relationships of transport
enterprises have to reconsider the type of their business and performance indicators, we used the program implemented in
production activities, and forward these activities toward the every programming language, which allows solving a wide
analysis of technical and performance indicators of utilization range of problems, including analysis of transport
of the road transport vehicles, in terms of interconnection performance factors and the affecting factors. Electronic data
between the results of the transportation process and satisfying processing tools used at auto plants help avoiding the
the customer needs [17]. In the case of the long-distance problems with application of the given coefficient. This
export-import transportation services, the focus should be correction factor is calculated by means of the following
made on solving the issues with comparability of formula:
transportation indicators. In the given article we propose a
formula and a model for calculating the influence of the time kij=fai+di/dj*(1- fai) (1)
factor to be taken as a fraction of time of the road traffic
within the total time of the work order. The given formula and where fa i coefficient is the time fraction of the
the model should be used to achieve comparability of the movement time defined by the work order;
transport products with average transportation distances, as di is the average haulage distance within the i-period,
well as transportation costs and labout productivity of the km.
driver. To consider the example given below for three periods
One of the reasons for low competitiveness of products from 0-basic, p-average, n-final final.
in Russia is the cost for the transport and forwarding of the i=0,p
distribution services, which are 2 or 3 times higher than the j=p,n
level of these services in the advanced economies. This may Transport operations or cargo turnover can be
be explained by the deficiencies in the transportation determined taking into account the travel time coefficient
operations and insufficient analysis. Moreover, currently the (proportion of movement time in the overall time of the work
issues related with upgrading the delivery services are given order):
little attention [17].
By ― delivery‖ we understand not only transportation He,z*fa*vf*md*kf*kl = Q , (2)
operations, but also other operations and services, which all
together ensure effective services in the distribution of goods. He, z - time in the work order of vehicles (= number of
According to research conducted in the USA, the share vehicles * calendar time per vehicle per year * technical
of the transportation costs in the production and distribution availability rate * coefficient of vehicle use =
processes equals one-third of the end product. Therefore, 20*2200*0,9*0,6 = 23760), ч.
proper transportation services in the distribution of goods can Example:
be considered as one of important reserves in the process [17]. 23760ч*0,5*25км/ч*10т*0,5*1,0 = 1485000 ткм.
The functions of transport in the distribution system involve While the coefficient characterizing the share of
the transport and forwarding services. movement travel in the overall time of the work order (time
Transportation services can be defined as activities motion factor) is determined by the relation of the
associated with the process of transfer in space and time of movement time to the total time of the work order, we can
freight and passengers including provision of transportation, estimate this coefficient during the planning process using
storage and handling facilities. the following mathematical relationship:
The forwarding services are an integral part in the
process of goods transfer from the producers to consumers, fa = d / d + vf * md * kf * kl * hs , (3)

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 Advances in Economics, Business and Management Research, volume 47

At the same time, we estimate the performance of the Qij transport

operation and the Gij traffic volume using the chain substitution method:
where d is the average haulage distance;
Qij= Qj/ Qi
vf is the average speed, km/hour; Gij= Gj/ Gi
md is the average dynamic load rating, t; Substituting the input data:
kf is the coefficient for the mileage; Q0,1= Q1/ Q0=250/200=1,25 (125%)
G0,1= G1/ G0=10/10=1,0 (100%)
kl is the coefficient for load rating;
Further, for the next segment
hs is the average off-time at lift-on/lift-off per one ton of Q1,2= Q2/ Q1=225/250=0,9 (90%)
cargo. G1,2= G2/ G1=10/10=1,0 (100%)
Using the data given in the example and the table, we can then, at fa0=0,5 we have
k0,p=0,5+20км/25км*(1-0,5)=0,9
confirm the correlation 0,50= 20 км/ 20км + 25
км/ч*10т*0,5*1,0*0,16 ч/т. Under fa0=0,6, we have
Today indicators of the transportation process are used in k0,p=0,6+25км/22,5км*(1-0,6)=1,04
planning, calculation and providing reports. They are scarcely
From the basic formulae (2) и (3)
used to determine effectiveness and efficiency of innovations
Q0(V)=Q0/k0,1=200/0,9=222,222
aimed at improving utilization of vehicles at enterprises. Q0,1(k)= Q0/ Q0(V)=250/222,222=1,125 (112,5%)
Using the possibility of correction together with the or
index of improvement or implementation of a plan, or in order Q0,1(k)= Q0,n*k0,n=1,25*0,9=1,125 (112,5%)
For the following period
to compare the basic and planned indicators of transport
Q1(V)=Q1/k0,р=250/1,04=240,385
operations by means of a simple example, we demonstrate the Q1,2(k)= Q1/ Q1(V)=225/240,385=0,936 (93,6%)
assigned interrelated indicators given in Table 1. or
Q1,2(k)= Q1,2*k0,р=0,9*1,04=0,936 (93,6%)
Table 1 Initial indicators for the application of the
corrective factor k 3. DISCUSSION
Indicator Symbol Unit Basic Accou Accou
measu period nt nt
re. (о) period period The process of changing the location of cargo in the
(1) (2) international supply chain can be presented through technical
Share of fa - 0,50 0,60 0,40 and operational indicators in the form of a mathematical
movement time model. The change in the average transportation distance
within the total
time of the affects the change in time components in the work order [18].
work order Execution of urgent and one-time transportation, which
Average d km 20 25 22,5 are identified in the process of work, requires the provision of
transportation a reserve capacity for the car fleet for each group of cars. To
distance
Transport Q tkm 200000 250000 225000
do this, it is necessary, first of all, to analyze all performance
operations indicators and ways to improve them [19]. First of all, this
Transportation G t 10000 10000 10000 refers to the indicator which shows the time span of a vehicle
volume under the work order (time in the outfit), which consists of the
travel time and the downtime, including loading and unloading
Development of the calculation model is based on the following
principle of the problem. time. It is recommended to calculate the time factor of the
Let us consider the movement of a vehicle. Let l be the total traffic vehicle on the line for the productive operation of the transport
route where a vehicle moved during the time Tg and was idle during the time process. However, this method of calculation has a drawback
Tp. due to the fact that idle time for loading and unloading is an
In this case, we assume the motion to be uniform with an average
velocity Vcr. The considered factor influences the volume of work performed integral part of the transport process and its elimination is not
(transportation, the traversed path), the cost of works, the value of its sufficiently justified.
influence is recommended to be evaluated by the value of fanε [0,5; 0,6], the The increase in time in the outfit is an extensive factor,
correction factor or correction coefficient k0, n is calculated from these not only the volume of transportation, but also the costs,
values. We calculate the values k0,n of the correction coefficients for the two
extreme values fai. The correcting factor itself is calculated by the formula: primarily the variables, depend on this. time in the attire
affects the mileage of the rolling stock. During the downtime,
kij=fai+di/dj*(1- fai),
loading and unloading operations are influenced by the time of
Q0(V)=Q0/k0,n the logistics service operations: preliminary subgrouping of
Q0,n(k)= Q0/ Q0(V)=Q0,n*k0,n
Consider the calculation in the example for three periods from 0 - basic,
cargo, processing of transport documents, etc. Reducing
p - average, n - final with the following input data: let the car have a constant downtime for these operations within the same time in the
loadg (0) = g (1) = g (2) = 10 thousand tons. Denote the work done on these outfit leads to a relative increase in driving time, and this
sections, respectively, Qn, where n is the sequence number of the path. At the affects the increase in the number of riders, the increase in the
same time Q0 -200 thousand tons, Q1-250 thousand tkm, Q2-225 thousand
tkm, then the distances (paths) will be denoted by dn = Qn / gn, then
productivity of cars, as a result of which the fulfillment and
d0=200/10=20kм overfulfilment of the transportation plan can be achieved [20].
d1=250/10=25kм The problematic issue in the development of measures to
d0=225/10=22,5kм

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reduce downtime under logistics operations is to improve Table 2 Analysis of changes in transport work
planning and accounting for the time spent on these works. Indicators Value
To reduce the time of loading and unloading, and thus to Changes in transport work ∆ Qo,1:
Total + 25%
rationalize the material flow, organizational measures in the due to the changes:
field of loading and unloading are necessary [21]. For the - transport work (cargo turnover) + 12,5 %
customer, this means that special attention should be paid to - average transportation distance + 12,5%
the accumulation of goods at the supplier or freight forwarder Change of transport work ∆ Q1 2
for each customer's unloading site. At large customer Total - 10,1 %
due to the changes:
enterprises, as well as when there is a danger of traffic jams at
- transport work (cargo turnover) - 6,4%
the gate of the enterprise or during certain unloading sites - average transportation distance - 3,6%
during the peak hours, the customer should raise the issue of
introducing a transport management system (dispatching Adjustments can be made either through the indicators of
service) and charging fees for idle time. Minimization of the calculation period, basic indicators or directly through the
downtime can be ensured through the development of index of change or fulfillment of the plan. Which option to
packaging and loading programs, as well as the use of choose depends on the purpose of the adjustment. Such
decentralized unloading sites. differentiation should be especially used for economic
For a number of enterprises, a "window of time" is competition, but it would also be necessary for the production
formed. This time is set for each delivery, which is provided documentation, which reflects the change in transport work,
with a regulated clearance process at the gate and at the and also would have high information importance for
loading platform. In case of non-compliance with the given quarterly and annual analysis.
delivery rhythm, only one excuse is accepted: when the culprit Thus, for an objective assessment of the traffic forecast,
of violations is a client who pays money to the forwarder for a it is recommended to determine the ratio of the time share of
simple. In accordance with the adopted procedure, the driver movement in total time in the order fa and its changes using
of a vehicle must provide his documents at the checkpoint. In the corrective factor, since This coefficient is often discussed
the same place the compliance with the established deadlines in the analysis of transport work, in order to plan an
is checked. In the absence of a note on the "time window" in innovative commitment aimed at its upgrading.
the cargo bill, the driver must bring an appropriate certificate
from his expedition, and only after that the delivery will start.
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