Modeling of Fourth-Party Logistics (4PL) by Iterated Local Search Algorithm (ILS) Based on Broadcasting Back-Up Link and Delivery Time Guarantee in Transportation Network
Document Type : Original Article
Author
Assistant Professor, Faculty of Economics, Kharazmi University, Tehran, Iran.
Abstract
Provision of the fourth-party logistics services is not based on capital assets, but it's in type of resource, capabilities and technology integration of the original organization with other companies and organizations (including 3PL producers, distributors, and companies). In this research, based on the functional domain of Fourth-Party Logistics (4PL) and by Iterated Local Search Algorithm (ILS) - Based on designing back-up securing broadcasting network link and delivery time consideration in the transportation network - A model for the optimal performance of a 4PL has been introduced. The results of the modeling show that the designed algorithm can be used in optimal decision making for 4PL companies by minimizing total logistic costs. The simulation results show that in order to provide secure network and guarantee timely delivery of goods and services in a network with 12 supply-demand pairs, 30 3PL service companies and 391 3PL transportation providers is required; also the lowest total cost of providing such a network will be 155906.67 units. In addition, if the 4PL company, as the transportation network manager, faces with 6 or fewer than 6 of supply-demand pairs, 22 3PL service companies must provide along with 242 3PL transportation providers. Based on this, the integration of the 3PL companies in the form of a 4PL company could have a significant impact on the quality and quantity enhancement of decision making and value added of the supply chain through the use of modern business models.
Keywords
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