To read this content please select one of the options below:

(excl. tax) 30 days to view and download

Using system dynamics to study the logistics outsourcing cost of risk

Zhixue Liu, Juan Xu, Yan Li, Xiaojing Wang, Jianbo Wu

Kybernetes

ISSN: 0368-492X

Article publication date: 12 October 2012

2289

Abstract

Purpose

The purpose of this paper is to use systemic thinking to explain and predict the cost of logistics outsourcing, and to devise policies to minimize the cost of risk.

Design/methodology/approach

A method of system dynamics is adopted to capture the dynamic interaction of logistics outsourcing systems and to analyze the impact of some factors in the system on policy decisions over a long‐term horizon.

Findings

This paper illustrates the internal mechanism of the logistics outsourcing cost of risk systems by virtue of system dynamic principles, to develop a system dynamics model, and to give a quite detailed description of how the model could work.

Practical implications

The results of the simulation analysis provide useful information for logistics outsourcing risk managers.

Originality/value

This paper contributes to the discussion on the use of system dynamics for studying logistics outsourcing cost of risk.

Keywords

Citation

Liu, Z., Xu, J., Li, Y., Wang, X. and Wu, J. (2012), "Using system dynamics to study the logistics outsourcing cost of risk", Kybernetes, Vol. 41 No. 9, pp. 1200-1208. https://doi.org/10.1108/03684921211275216

Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

Related articles