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Evaluating the Impact of Transportation Costs, Supply Chain Reliability, and Operational Efficiency on Global Import Decisions

Article

Last updated: 25 Dec 2024

Subjects

-

Tags

Management science

Abstract

The effectiveness of goods importation versus domestic production comes into consideration when considering transportation costs, supply chain reliability, and operational efficiency. Accordingly, in this paper, a theoretical model was developed and tested for scenario analysis. The simulation showed a significant impact of these factors on trade decisions. Despite the critical role of transportation costs, this study found they had to be put in a harmonious framework considering supply chain reliability and efficiencies. High supply chain reliability may mitigate risks due to high transportation costs, permitting imports under more challenging conditions. On the other hand, low reliability may translate into a lack of discouragement for imports, even with low transportation costs, raising the specter of delays and disruptions in the bargain. In this way, operational efficiency must be seen as one of the basic building blocks of sustainable importing. It enables firms to absorb as many additional costs as possible to integrate supplied goods effectively. This means that the research indicates several practical implications for firms and policymakers regarding the importance of increasing supply chain reliability and operational performance. Similarly, the study limitations, hypothetic in nature, and model simulation suggest that research conducted further empirical validation for the respective theoretical model.

DOI

10.21608/ijaebs.2024.317220.1099

Keywords

linear programming, network flow model, Transportation Costs, supply chain reliability, import decision-making

Authors

First Name

Mohamed

Last Name

H. Abdelati

MiddleName

-

Affiliation

Teaching Assistant Automotive and Tractor Eng. Dept., Minia University, Egypt.

Email

m.hilal@mu.edu.eg

City

Minia

Orcid

0000-0002-5034-7323

First Name

Hilal

Last Name

A. Abdelwali

MiddleName

-

Affiliation

Automotive and Marine Department, College of Technological Studies, PAAET, Kuwait

Email

haabdelwali@hotmail.com

City

-

Orcid

-

Volume

5

Article Issue

3

Related Issue

51940

Issue Date

2024-12-01

Receive Date

2024-09-01

Publish Date

2024-12-01

Print ISSN

2682-2938

Online ISSN

2682-2946

Link

https://ijaebs.journals.ekb.eg/article_395816.html

Detail API

https://ijaebs.journals.ekb.eg/service?article_code=395816

Order

395,816

Type

Original Article

Type Code

1,136

Publication Type

Journal

Publication Title

International Journal of Advanced Engineering and Business Sciences

Publication Link

https://ijaebs.journals.ekb.eg/

MainTitle

Evaluating the Impact of Transportation Costs, Supply Chain Reliability, and Operational Efficiency on Global Import Decisions

Details

Type

Article

Created At

25 Dec 2024