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Reduction of transport costs in the automotive trade in Mexico

Author

Listed:
  • Patricia Cano-Olivos
  • Diana Sánchez-Partida
  • José-Luis Martínez-Flores

Abstract

This case study was developed in a Mexican automotive industry. This research has two objectives. The first is evaluation and selection the logistics services providers (LSP) by the method multi-objective optimisation on the basis of ratio analysis (MOORA) for logistics outsourcing of transportation or distribution of products (cars) specifically of company-port and vice versa (export and import). The second objective is to assign order quantities to be shipped through different LSP for optimising full truckload to minimise total shipping costs respecting truck capacity and vehicles export-import constraints by linear programming. The paper demonstrates that the techniques used may be useful for reducing the overall cost in the year. According to this study in the 2019 year, the saving achieved $75,652,464 MXP. So, it is necessary to design an optimal plan vehicles distribution minimise costs.

Suggested Citation

  • Patricia Cano-Olivos & Diana Sánchez-Partida & José-Luis Martínez-Flores, 2022. "Reduction of transport costs in the automotive trade in Mexico," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 43(4), pages 553-574.
    • Handle: RePEc:ids:ijlsma:v:43:y:2022:i:4:p:553-574
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