INTEGRATED ROUTE TRANSPORTATION PLANNING

MODEL FOR INDUSTRIAL SUPPLY CHAIN

SCHOOL OF TECHNOLOGY MANAGEMENT & LOGISTICS

COLLEGE OF BUSINESS

UNIVERSITI UTARA MALAYSIA

2018
I declare that this report is my own work and effort, where other sources of information presented
in this report they have been duly acknowledged.”

Signature :

Name of author :

Date : June 03, 2018

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 DEDICATION

This thesis is dedicated to:

The sake of God, our creator and master,

Our beloved father, who taught us that the best kind of knowledge to have is that which is

learned for its own sake.

Our beloved, who taught me that even the largest task can be accomplished if it is done one step

at a time.

Our great lecturer Dr Nizamuddin Dato’ Zainuddin who always teach, support and motivate us.

Our energetic and great supervisor Dr Kamal Imran Shariff who taught us and give motivation as

well as bringing us with new experience through the creation of this thesis.

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 ACKNOWLEDGEMENT

First and foremost, I thank God for letting us live to see this thesis through. We are very fortunate

and grateful to Dr Kamal Imran Shariff as our supervisor for providing us with ideas and

encouragements, paramount to the realization of this thesis. Thank you for your support and

helpful suggestions, we will be forever thankful to you.

To Dr Nizamuddin Dato’ Zainuddin, we don’t know where we would be now if it wasn’t for you

huge help in correcting or revising our many mistakes. You are truly an outstanding person and an

able educator and, we thank you from the bottom of our heart.

Not least of all, we owe so much to our whole family for their undying support, their unwavering

belief that we can achieve so much. Unfortunately, we cannot thank everyone by name because it

would take a lifetime but, we just want you all to know that you count so much. Had it not been

for all your prayers and benedictions; were it not for your sincere love and help, I would never

have completed this thesis. So thank you all.

ABSTRACT

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An integrated route transportation planning system in every country has different characteristics
and involves an understanding of Supply Chain Management This study seeks to investigate the
best integrated transportation route for industrial in supply chain. Finding out the suitable route
planning by conducting comparison study through the existed model is another way to get better
understanding on the factor and indicator that will affect the supply chain industry. This paper
argues that private and the public sector have different agendas and planning but at the same time
may have common interests in the region that involve economic robustness, environmental health,
and social cohesiveness what is known as sustainability. And at the end what will be key point is
to find out best model of the integrated route transportation that can support the supply chain
industry. This study uses qualitative method which focus on comparative study based on model
that existed though descriptive analysis.

Keywords: Route Planning, Logistics, Supply Chain, Integrated Route

TABLE OF CONTENTS

ACKNOWLEDGEMENT .......................................................................................................................... 4
ABSTRACT ................................................................................................................................................. 4

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CHAPTER I ............................................................................................................................................... 9
INTRODUCTION....................................................................................................................................... 9
1.1 Overview ............................................................................................................................................. 9
1.2 Background of Study .......................................................................................................................... 9
1.3 Problem Statement ............................................................................................................................ 10
1.4 Research Objective ........................................................................................................................... 11
1.5 Research Question ............................................................................................................................ 12
CHAPTER II ............................................................................................................................................. 12
LITERATURE REVIEW ........................................................................................................................ 12
2.0 Scheduling, Routing and Route Optimization .................................................................................. 12
2.1 Routing.............................................................................................................................................. 13
2.1.1 Principles of Good Routing........................................................................................................ 13
2.2 Scheduling......................................................................................................................................... 14
2.2.1 Characteristics of Routing and Scheduling Problems ................................................................ 15
2.3 Route Optimization ........................................................................................................................... 17
2.4 Multimodal Freight Transportation ................................................................................................... 18
2.5 Factors That Affect Route Planning.................................................................................................. 19
2.5.1 Policy ......................................................................................................................................... 20
2.5.2 Social Network........................................................................................................................... 24
2.5.3 Technology ................................................................................................................................ 25
2.5.4 Environment ............................................................................................................................... 26
2.6 Route planning module as a part of Supply Chain Management system .......................................... 28
2.6.1 Distribution Systems .................................................................................................................. 28
2.6.2 Distribution Networks ................................................................................................................ 29
2.6.3 Supply Chain & Logistics Modelling Technique....................................................................... 32
2.7 Transport Planning for Reverse Logistics ......................................................................................... 33
2.7.1 Difference Between Forward Logistics & Reverse Logistics .................................................... 34
2.7.2 Reverse Logistics Network Planning ......................................................................................... 40
CHAPTER III ........................................................................................................................................... 43
METHODOLOGY ................................................................................................................................... 43
3.0 Overview .......................................................................................................................................... 43
CHAPTER IV............................................................................................................................................ 46
DICUSSION .............................................................................................................................................. 46
4.0 Finding .............................................................................................................................................. 46

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CHAPTER V ............................................................................................................................................. 52
CONCLUSION ......................................................................................................................................... 52
5.0 Overview ........................................................................................................................................... 52
REFERENCES .......................................................................................................................................... 54

List of Figures
Figure 1 Routing Network Example (Haksever et al., 1999) ...................................................................... 17
Figure 2 Illustration for Tour ...................................................................................................................... 17
Figure 3 . Routes Optimization via Multiple Spanning Tree ...................................................................... 18
Figure 4 Distribution paths (Source: Harmut, 2002) .................................................................................. 29
Figure 5 Inbound and outbound routes merging at CDC (source : (Hu, Zhao, & Choi, 2013)................... 31
Figure 6 Illustration of Closed, Open and Inter-depot Routes .................................................................... 41
Figure 7 Reverse Network Structure ........................................................................................................... 42
Figure 8 Research Activities ...................................................................................................................... 44
Figure 9. Integrated Transport Planning ..................................................................................................... 48
Figure 10. Supply Chain............................................................................................................................... 49
Figure 11. Reverse Logistic Routing .......................................................................................................... 50
Figure 12. Routing Supply Chain ............................................................................................................... 51

List of Table
Table 1 Principles of good routing. ............................................................................................................. 14
Table 2 Scheduling or routing objectives of different types of services (NPTEL, 2011) ........................... 15
Table 5 Online Sources ............................................................................................................................... 44
Table 6 Web Journal ................................................................................................................................... 47

LIST OF ABBREVIATION

CD Cross-Docking

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CDC Cross-Docking Center
CRC Centralized Return Center
DC Distribution Center
DETR A New Deal for Transport
DSR Design Science Research Method
GDP Gross Domestic Product
IT Information Technology
NPTEL National Programme on Technology Enhanced Learning
SCM Supply Chain Management
TOD Transit Oriented Development
USA United States of America
VMI Vendor Managed Inventory

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 CHAPTER I

INTRODUCTION

1.1 Overview

This chapter provides an overview of the study background, problem statement, objectives of

the study, research question and definition of the key terms used in this study. These are

followed with discussion on the contribution of this study.

1.2 Background of Study

The usage of transportation all over the world generally is use for supporting the movement of

people or goods. In supply chain, the role of transportation for logistics activities is crucial.

Furthermore, one of key aspects of a successful company is the ability to quickly and effectively

react to changes in the supply chain (Marko, R, František, R, & A, 2012). In addition,

transportation system has an effect on economic development of a country. Having poor

transportation system could lead to slow economic growth. Singapore had recognized that the lack

of an efficient transport system could have a damaging effect on the economic growth and

development of the country (Chin & K, 2005). Moreover, according to sector research (Chang,

1998), transport accounts for as much as 30% of the total cost of logistics operations – almost as

much as Warehousing and Inventory together (Cristini, n.d).

Once again, it can be said that, transportation have crucial role on the sustainability of business

activity. Thus, having an effective and efficient route transportation planning could help

organizations to achieve economic of scale as well as high customer satisfaction. Discussing on

the supply chain, the term of distribution, procurement, customer service, etc., are the common

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terminologies that usually found in many industries. According to Marko et al., supply chain

management can be understood as the flow and management of resources across the enterprise for

the purpose of maintaining the business operations profitably. Resources include materials (raw

materials, work- in progress, finished products), people, information, money, negotiation or any

other such resources that must be managed for profitable business operations (Sehgal, 2009;

Rosenbloom, 2004) (2012).

Choosing the right freight transportation and right route to deliver the service could be an

advantage for a company. As the cost of transportation can be fluctuate due to oil price, demand

and supply, and the distance of the final destination. Meaning to say that, the freight transportation

cannot be take for granted, as it is a serious issue in supply chain. Now consider the impact of

transportation activities on the overall economy of a country. The numbers are exciting. In the

United States in 2005, freight transport activities accounted for 10% of the GDP (Cristini, n.d).

Therefore, this study try to analyze and compare the model of route transportation planning from

the previous study as it will help the decision maker to make effective and efficient decision route

planning.

1.3 Problem Statement

Every organizations have their own business strategy that differentiate them from their competitors.

Providing the customer with on time delivery at the right place, right item and right condition will

contribute to the high customer satisfaction. However, some companies unable to compete for

providing reliable service for their customer due to certain reasons. According to Kurban (2016) some

of the reasons include vessel delays, logistic constraints and lack of proper coordination of the freights

(Culley et al., 1991). Such solutions can include proper planning in advance to take into account the

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expected delivery time while calculating the most probable transit time. Those are the example of the

most common factors that will affect the performance of organizations. Hence, such a proper planning

for integrated route transportation is required to improve the service.

Moreover, one of the greatest challenges in transportation is to increase operational excellence through

more effective deployment of resources (Hornstra, 2014). Besides, the role of IT and different agendas

between private and public sectors contribute to the development of integration route transportation

planning. Based on the findings, Marko (2012) stated that IT systems often support or take

responsibility for logistics planning of the vehicles of companies and the companies are searching for

new technologies that increase the quality of their services (Gehrke, Woltusiak, 2008) .

1.4 Research Objective

The main objective of this study is to compare existed route transportation planning model for

industrial supply chain. The model will be compared based on the previous research available in the

online resources. In order to achieve the main objective, the following objectives are outlined.

a) To describe the factor that affect the designing of integrated route transport planning for

industrial supply chain

b) To identify the existing route transportation planning model for industrial supply chain

a. To compare existing route transportation planning model for industrial supply

chain based online journal article.

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1.5 Research Question

With reference to the previous problems mentioned above, this study attempts to answers the following

questions:

a) What are the factors that affect the designing of integrated route transport planning for

industrial supply chain?

b) What are the route transportation planning model available that is used to support the

supply chain activity?

a. How the route transport planning model differs from each other?

CHAPTER II

LITERATURE REVIEW

2.0 Scheduling, Routing and Route Optimization

In the logistics process there is three different processes that usually being performed for

effective and efficient delivery or collection of raw material, work in process or finished goods. The

three processes include scheduling, routing and route optimization. Routing, route scheduling, and

route optimization are all critical processes for creating reliable and cost-effective routes (Route4me,

2016).

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2.1 Routing

The term of routing is referred to the route planning itself, whereby it is one of the critical

components in logistics process. Basically, routing can be defined as the process of mapping out the

unique ways that one or more vehicles will take while they deliver or collect stock from each of their

stop points (Bell, 2016). In other words, routing is aimed to minimize the travel time to reach certain

point of destination by creating the most cost effective route. It is said that routing is a critical part in

logistics process that will affect the logistics activities like transporting or distributing goods.

According to Route4trucks (2016), routing of goods and services incurs huge costs for vehicle

operation, fuel, labor and maintenance. Hence, in order to minimize the shipment cost of delivery

goods, some principles need to be followed.

2.1.1 Principles of Good Routing

Having a good route planning for the delivery of goods could lead to positive impacts like

improve customer satisfaction, reduce the operational costs and short or fast route. There are several

good principle of routing that can be followed to get those positive impacts on the logistics process.

According to Resourcer (n.d), eight principle to be followed in order to have an effective route plan as

shown in Table 1.

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 No Principle Implication

1 Load trucks with stop points closest to each other Minimizes interstop travel
between them
2 Stops on different days should be arranged to minimize Develop overall route, plus
travel time and distance daily routes
3 Build routes beginning with the farthest stop from depot Efficient routes

4 Stops should be sequenced or should form a teardrop No path cross each other
pattern
5 Most efficient routes are built using the largest vehicles Will minimize total
available distance/time traveled to serve
the stops
6 Pickup should be mixed into delivery routes rather than To minimize the amount of path
assigned to the end of the routes crossing
7 For a stop that is far from a route cluster, alternate means Using small trucks or for-hire
of transport can be explored transportation service as
alternative
8 Avoid short stop time windows Narrow stop time window can
force stop sequencing away
from ideal patterns

Table 1 Principles of good routing.

2.2 Scheduling

Nowadays, the complexity of transportation planning is extremely increase. As a part of logistics

process, scheduling involves activities like planning the timing for every places being visited. In other

words, route scheduling play an important role in integrating the transportation for industrial supply

chain. Further, routing and scheduling are two elements that cannot be separated in the logistics

process. Based on Route4me website (2016), the main objective of both routing and route scheduling

is to cut down on your expenses, such as mileage and vehicle capital costs. However, it should be

remembered that route scheduling made based on the service type, see Table 2. The reason behind

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route scheduling is due to the fact that there is changes in customer demands, legislation become stricter

while rising fuel and labor costs are adding further pressures as well as trend in supply chain

(Ortec, n.d). Besides, in order to set up the effective route scheduling there are some barriers that need

to be coped as shown in Table 3.

No Service Type Objective

1 School Bus Minimize student-minutes on the bus

2 Logistics Minimize the distance travelled to pick up and/or to

deliver parcels following optimum routes
3 Emergency (ambulance, police, fire) Minimize response time

Table 2 Scheduling or routing objectives of different types of services (NPTEL, 2011)

No Restriction Description

1 Time windows Loading and unloading locations (e.g. depots, customers),

inner city restrictions
2 Time & distance Travel times and distances between all locations taking into
account speeds, vehicle types and expected traffic congestion
3 Vehicle limitations Including e.g. weight, volume, loading meters, pallets (and
combinations of these elements); but also compartments and
other complex loading restrictions
4 Resource capabilities Different types of vehicles, trailers and drivers. Each with
their own required capabilities for driving, (un)loading and
other location-specific restrictions
5 Driver availability A driver must be available, and scheduled routes must adhere
to driving and working time legislation
6 Cost constraints Taking into account the cost structures of the various
resources or subcontractors when minimizing costs
7 Other constraints Including multi-depot scheduling (e.g. multiple location
loading on one route, combining in- and outbound flows, etc),
as well as any industry-specific business constraints
Table 3. Restriction for creating effective route scheduling. (Ortec, n.d)

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2.2.1 Characteristics of Routing and Scheduling Problems

Routing and Scheduling Problems are purposively to minimize the total cost of providing the service.

And these activities are characterized by nodes, arcs, tour and feasibility, as shown in Figure 1

(NPTEL, 2011). The figure comprises of five circles called nodes. Node 1 is the depot node from

which the vehicle starts and ends. Nodes 2, 3, 4 and 5 represent four distribution centers (Haksever

, Render, Russell, & Murdick, 1999). Arcs reflects to the line that connecting the nodes. According

to Haksever et al., (1999), Arcs may describe the time, cost or distance required to travel from one

node to another. Arcs may be directed (arrows) or undirected (simple line segments) (NPTEL,

2011).

The arrow represents the direction of travel in the case of routing problems (e.g. one-way streets)

or precedence relationships in case of scheduling problems. Furthermore, Tour is the route for the

vehicle (see illustration 2) and according to NPTEL (2011) the feasibility implies that a tour must

include all nodes, a node must be visited only once and a tour must begin and end at a depot. Thus,

basically, the route specifies the sequence in which the nodes (or arcs) are to be visited, and a

schedule identifies when each node is to be visited.

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 Figure 1 Routing Network Example (Haksever et al., 1999)

1 2 3 4 5 1
1 5 4 3 2 1
Figure 2 Illustration for Tour

2.3 Route Optimization

Finally, there is route optimization as an important elements that need to be considered. Route

optimization used as a part of evaluation for routing and scheduling in delivery or shipment of goods.

Generally, route optimization is the process of planning one or multiple routes, with the purpose of

minimizing overall costs, while achieving the highest possible performance under a set of given

constraints and considering other routes which share the same purpose (Route4me, 2016).

The aim of logistics network optimizations is to design and allocate a set of logistics facilities for better

satisfying the demands of customers (Taaffe, Geunes, and romeijn, n.d).

In addition, route planning is a part of route optimization process which comprises defining route

constraints and parameters, planning routes, dispatching routes, monitoring routing activity, auditing

routing activity, and improving planned routes

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.

Figure 3 . Routes Optimization via Multiple Spanning Tree

2.4 Multimodal Freight Transportation

The use of various mode of transport in logistics activities is one of the key success for industrial

supply chain to improve customer satisfaction and minimize the cost as low as possible. Multimodal

transportation means using a variety of carriers (sea, road, rail transport, airfreight) under a single

forwarding agreement between a customer and a forwarder (Albacor, n.d). Moreover, freight

transportation is a key supply chain component to ensure the efficient movement and timely availability

of raw materials and finished products (Crainic, 2003). The demand of freight transport results from

customers and producers who are geographically apart from each other. Following trade globalization,

the conventional road mode is no longer an all-time feasible solution, necessitating other means of

transportation (and their combinations) (Woensel, Dellaert, SteadieSeifi, Raouf, & Nuijten, 2013). In

addition to this, a statistic fact stated that in 2010 about 45.8% of total freight transportation in

European union countries were transported via road, 36.9% via sea, around 10.2% via rail, and 3.8%

via inland waterways (Eurostat, 2017).

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In many part of the world, there are many new startup company arising to compete logistics industry,

yet some of the existing companies are focused to maintain their business. Following the trends, freight

transportation has upgraded the services over time. As the objective is to have low cost as possible for

the operational, freight operator still managed to provide high quality service, especially during the

economic crisis in 2008.

According to Woensel et al., (2013), new regulations and taxes were raised to encourage companies to

shift to more sustainable solutions. Clearly, in this context, efficient and effective transportation is

needed, as the transportation cost share in the supply chain is significant (Ghiani, Laporte, &

Musmanno, 2013).

Transportation chain is basically divided into three segments: prehaul (or first mile for the pickup

process), long-haul (door-to-door transit of containers), and end-haul (or last mile for the delivery

process).According to Woensel et al., (2013), mostly the pre-haul and end-haul transportation is

carried out via road , however for the long-haul transportation, road, rail, air and water modes can be

considered as well.

2.5 Factors That Affect Route Planning

In designing integrated route transport planning, planner need to analyze, evaluate factor or

element that contribute to the development of integrated route transport. Basically, there are

several factors that affect the route planning. Those factors include Policy, Social Network,

Technology and Environment.

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2.5.1 Policy

Policy is one of the factors that affect the routing for transportation all over the world. There are

four things that need to be considered. Newman (2009) identifies a set of four policy tools, which

he considers necessary for implementation, and which can generally be ensured not locally but

only through regional planning a strategic policy framework that links centres with a rapid transit

base, almost invariably electric rail. First is a strategic policy framework that establishes where

centres need to be created and with what kind of density and mix. Secondly, a statutory planning

base that requires development to be implemented with the necessary density and design in each

centre. Thirdly, a public-private funding mechanism to enable both transit and TOD to be either

built or refurbished by linking transit and the centres it will serve. Despite, its potential benefits,

regional planning should be considered a necessary but not sufficient condition for the

development and success of TOD projects (Leite et al., 2008).

This might sound quite paradoxical, since the origins of TOD can be traced to Europe as an

intrinsic planning principle in many European countries (Pojani and Stead, 2016). Hence, Renne

and Wells (2004) describe TOD as an “emerging European-style planning in the USA. According

to them, this intergovernmental cooperative style of planning is not typical of America and

represents a “European-like” transition in planning.

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At the same time, it is important to note that the difficulties in vertical and horizontal institutional

coordination are generally outlined in literature as one of the main barriers to the land use-transport

planning integration required by TOD (Hull, 2009; Leite et al., 2008; Tremblay Racicot and

Mercier, 2014).

This paper specifically discusses the strategic role and importance of regional planning for TOD.

The aim is to analyze which policy tools allow regional TOD planning, their theoretical benefits

and the barriers to their implementation.

2.5.1.1 Recent UK Transport Policy

The development of sustainable transport and infrastructures is not a common sense anymore in

many countries such as UK, Malaysia, etc.. In UK, the reevaluation of UK transport policy began

with the release of the government white paper, ‘‘Roads to Prosperity,’’ in 1989 ( Noland, 2007).

According to Noland (2007), the paper comprises extensive road-building program for the nation

that was based on forecasts of growth trends in private car usage. However, the point being

concerned in the paper rapidly being criticized by many people including travelers. In short, new

policy was enacted in th1998 which is known as Transport White Paper, ‘‘A New Deal for

Transport’’ (DETR, 1998a).

Noland (2007) stated that this paper also referred to the integrated transport policy, which was

aimed to promote non– car modes of travel, demand management policies (such as road pricing),

and greater concern for mitigating or avoiding the adverse environmental effects of transport. Yet,

still, the policy made cannot tackle certain issue like environmental issue. And finally, the

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government come up with 10 years planning that still align with the Transport White Paper that

maintains much of the positive rhetoric on finding balanced solutions.

2.5.1.2 Recent Malaysia Transport Policy

In Malaysia, the transport policy is known as National Planning Policy. The process of enactment

of the policy was initially to have better regulations on transport even tough at that time Malaysia

have National Automotive Policy.

During 1967-1968 Malaysia Transportation Study was conducted and financially financed by the

United Nations Development Programme and executed by the World Bank (New Straits Times,

2007). According to Ministry of Work (2009), there are two important factors related to transport

that need to be concerned which is demand of transport is a derived demand and investments are

lumpy and capital-intensive with long gestation periods. In short, finally Malaysia come up with a

framework that is more less the same with UK, which is developing a 10 year Plan or known as a

series of Malaysia Plan. This framework is aimed to evaluate the transportation project such as the

double-tracking of the present railway line, the proposed fast Kuala Lumpur-Singapore passenger

train service, additional lanes to the North-South Expressway and the emergence of cheap air travel

must not be looked in isolation but as part of a total integrated transportation system (New Straits

Times, 2007).

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2.5.1.3 Policies That Influence Supply Chains And Freight Flows

This is an important initiative for supply chains especially, since it affects the raw material location

and creates an intense need of total product life cycle supply chain that is close to the sustainable

supply chain. Supply chains though are also influenced by a host of other policies. These are

summarized in Box 3-3 as the most important areas where public policy decisions affect freight

transportation flows and supply chains.

They range from the traditional perspective of infrastructure building, like the creation of a new

port facility or the upgrade of an existing highway to the indirect incentives of profit taxation and

import duties that affect decisions on industry relocation.

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2.5.2 Social Network

According to Diane M. Phillips, Jason Keith Phillips, (1998) in journal social network analysis of

business logistics and transportation, the centre of the network are placed very closed with the

business logistics and transportation activities. The genesis of the marketing concept a few years

noted that marketing was composed of two conceptual halves: demand creation and physical

supply, (Shaw, 1916).

Over time, these halves have grown with demand creation being studied within such sub

disciplines as retailing, advertising, and sales, and physical supply evolving into the modern sub

disciplines of business logistics and transportation. The fields of business logistics and

transportation were in a state of semi‐maturity (Bowersox, 1966). One sign of maturity in a

scientific discipline occurs when that discipline becomes interested in its own patterns of scholarly

communication (Borgman, 1990; Everett and Pecotich, 1993). Several scholars have already

examined the nature of the fields of business logistics and transportation (Emmelhainz and Stock,

1989; Fawcett et al., 1995; Ferguson, 1983).

Social network analysis is a fairly new technique which traces its earliest beginnings to the 1960s

(Scott, 1991) and has just recently been introduced to the field of business. As such, social network

analysis refers to a body of quantitative and qualitative measures which are used to better

understand the relationships between and among members in a given social network (Scott, 1991).

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Citation analysis research has, for example, examined a global network of scientific articles (Price,

1965), untangled smaller networks of scientific articles (Noma, 1983) and described the structure

of a subdiscipline of a scientific community (Cote et al., 1991; Gatrell, 1984; Leong, 1989).

On a micro level, citation analysis is a technique which can provide greater information about the

citations made to and received from journals, authors, books, etc. With respect to business logistics

and transportation, several studies have attempted to describe the nature of the discipline using

survey research (Ferguson, 1983; Emmelhainz and Stock, 1989; Fawcett et al., 1995). To date, no

studies have used both social networks and citation analysis together to study these fields.

2.5.3 Technology

The value of collaboration in the supply chain is widely 25mphasized by researchers and

practitioners. In recent years, researchers have 25mphasized the important role of freight carriers

in buyer-supplier collaboration (e.g. Fabbe-Costes et al., 2009; Gotzamani et al., 2010; Huemer,

2012; Stefansson, 2006). Driven by the increasing need to provide competitive transportation

services, carriers have not only participated in buyer-supplier collaboration, but also formed

collaborative transportation networks with proximate or distant competitors (Cruijssen et al.,

2007a). In general, supply chain collaboration among peers is called horizontal collaboration

(Barratt, 2004).

Since suppliers and buyers are physically connected by means of a freight transportation stage,

carriers fulfilling the transportation function are addition to their role in vertical supply chain

collaboration, carriers may engage in “horizontal” collaboration (Mason et al., 2007).

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Horizontal collaboration is defined by Cruijssen et al. (2007b) as “identifying and exploiting win-

win situations among companies that are active at the same stage of the supply chain”.

In a transportation context, horizontal collaboration enables carriers to gain access to

complementary resources (Carbone and Stone, 2005; Lemoine and Dagnaes, 2003) and deploy

their resources more effectively (Mason et al., 2007).critical for the success of vertical supply

chain collaboration (Stank and Goldsby, 2000). Pramatari (2007), for example, provides an

overview of collaborative supply chain practices and shows how the underlying enabling

technologies have evolved. Esper and Williams (2003) provide case examples detailing the

supporting and enabling roles of IT in collaboration between suppliers, carriers, and buyers.

Survey-based research on the relationship between IT and supply chain collaboration often focuses

on a single IT application or uses aggregated measures for IT (Zhang et al., 2011). Evangelista et

al. (2012) consider a wider range of IT applications in their exploratory survey, which indicates a

positive relation between IT adoption and the performance of logistics service companies.

2.5.4 Environment

As concern for the natural environment continues to grow, supply chains are being put highly in

pressure to develop means of ensuring sustainability in their operations. Of all supply chain

processes, transportation is most readily acknowledged as creating negative external costs to

society.

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These include negative effects on air quality, human fatalities, resource depletion, government

expenditures on infrastructure, and congestion resulting in reduction of speed of product

movement (Gillen, 1996; Noy, 1997; Murphy and Delucchi, 1998; Long, 1999; Weber and Weber,

2004; Sweet and Macquet, 2005; Black and Sato, 2007).Increased globalization of world

economies has created need to reconfigure supply chains as new directions of freight flows have

developed with resulting economic advantages and environmental costs (Lakshmanan and Han,

1997; Halldorsson et al., 2009).

In addition, competitive and regulatory demands are putting great pressure on the transport

function to achieve greater sustainability (Nederveen et al., 2003; Rodrigues et al., 2008).

Amekudzi et al. (2009, p. 340), notes “there is emerging consensus that a sustainable transportation

system must be safe, efficient in providing accessibility and mobility, and in enhancing economic

productivity, without impacting the natural environment negatively”.

As a consequence, concern over sustainability of supply chains is increasing with additional focus

on the concept of the triple bottom line (Elkington, 1998, 2004) of economic/profit, ecological,

and societal considerations (Halldorsson et al., 2009).

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2.6 Route planning module as a part of Supply Chain Management system

2.6.1 Distribution Systems

Distribution or transport systems focus on distribution of products to consumers. Much of the

production often needs to be delivered to many stores or, in some cases, it is moved directly to

customers. Basically, there exist two different ways of how the merchandise can be shipped.

Shipments may go directly from the factory or from a distribution center to the customer, with a

single order. This simplest form of distribution is only efficient for large orders using up the

vehicle. Smaller orders can be shipped jointly in supplies starting from the factory or distribution

center and calling at several customers. A stronger bundling of small shipments is achieved by a

joint transport from the distribution center to a transshipment point and delivery in short distance

tours from there, see Figure. 4.

A recent concept for the supply of standard materials is the vendor managed inventory (VMI),

where the supplier decides on time and quantity of the shipments to the customer but has to keep

the stock in the customer’s warehouse between agreed minimum and maximum levels. In this case,

the customer’s warehouse has the same function as a distribution center (Stadtler, Kilger, 2008).

28
 Figure 4 Distribution paths (Source: Harmut, 2002)

2.6.2 Distribution Networks

A supply chain can be understood as a specific network (Kotzab, Bjerre, 2005) consisting of

interconnected entities of several types. The purpose of distribution networks is to deliver goods

to customers. From a certain perspective, transportation of material or goods from suppliers to a

factory and from a factory to customers, are the same or very similar processes. In both cases, the

objective is to move something between several locations under certain constraints. All

transactions in such networks are initiated by orders. Every order basically includes order lines

(which article), quantities, addresses and time information.

It is favorable that the logistics system provides information about delivery ability, status, due

dates, tracking and tracing articles and shipments, and provides additional services like inventory

management, scheduling of supplies, invoicing, reminding and others (Gudehus, Kotzab, 2009).

The goal of the transportation system is to move a subset of portables to their final destinations in

the most efficient way.

29
It is necessary to consider capacity constraints, fuel constraints, movement costs, pickup costs,

number of mobiles, mobile types, roadmap graph types, initial locations, initial fuel, goal location

and other possible specialfeatures (Helmert, 2008). From the perspective of agile supply chain

management, cross-docking (CD) becomes a useful and effective way to speed up the turnaround

time of fashion products and decrease the time-related risks in the supply chain. In fact, CD is a

popular logistical strategy by which packages of products are unloaded from the inbound vehicle

and then are almost directly uploaded into the outbound vehicle with little or no storage in between.

As a practical real-world industrial practice, CD has attracted substantial attention from both the

academy and the industry. To implement CD, there is usually a cross-docking center (CDC). Under

CD, in many cases, loads are divided into units based on their respective destinations and then are

reloaded into the corresponding outbound trucks. This strategy has several potential merits. For

example, it can reduce total inventory costs and lead time, enhance customer service level, and

improve the relationships with suppliers. However, implementing CD requires careful

considerations. As Van Belle et al. (2014), Schaffer (1998), and Choi (2006) point out, a couple

of factors are critical to the success of CD operations.

First, since CD requires support from the supplier side, it requires the supplier to possess the

capability to respond reliably and quickly within a short lead time. Second, CD schedule depends

heavily on the availability of accurate information about the arrival times, the departure times, and

the destinations that products will be delivered to. As a result, just-in-time information sharing is

necessary for successful implementation of CD. Third, the precision on time and space is critical

for exercising CD.

30
To be specific, short lead time must be ensured by the very accurate arrival and departure of goods.

Thus, the corresponding transport system must have the right capability to prevent delays. Fourth,

transport process should be simple enough to reduce the uncertainty inherent in it. It will be most

desirable if the demands are reasonably big and can be well predicted because the resulting

transport volume can be increased by merging multiple orders.

The Figure illustrates how the inbound and the outbound routes are merged at a typical CDC for

fashion products. In Figure 5, it is presumed that all trucks start and arrive CDC finally. In each

route, a truck visits a series of suppliers and customers to pickup and deliver goods. According to

the specific supply relationship between the suppliers and the customers, at CDC goods are

unloaded from the inbound trucks and are then loaded onto the outbound trucks that serve the

target customers. In practice, each route should only visit a little set of suppliers or customers;

otherwise, efficiency will be reduced by the frequent unloading/loading processes at CDC.

Figure 5 Inbound and outbound routes merging at CDC (source : (Hu, Zhao, & Choi, 2013)

31
2.6.3 Supply Chain & Logistics Modelling Technique

To design the network of logistics and supply chain the use of modelling technique could help

company to design the new with integrated route transport. The various modeling techniques can

allow companies to look at a comparison of the functioning, cost efficiency, and customer service

efficiency of the various logistics networks that have been proposed. Hence, based on the

technique model available the company could choose which one that is suitable for their business.

According to Murray (2018), there are three route model technique, which is Optimization

Modeling, Simulation Models, and Heuristic Model.

The first one is the optimization model, this model is used mathematical formula. Meaning to say

that the optimization model is derived from the precise mathematical procedures that offer the best

or optimum solution.

The optimization model looks at data such as the level of customer service to be obtained, the

number and location of distribution centers, the number of manufacturing plants, the number of

distribution centers assigned to a manufacturing plant, and the inventories that must be maintained

(Murray, 2018). And this model used linear programming or also referred as LP. This is also useful

for linking supply and demand limitations of manufacturing plants, distribution centers, and

market areas.

Another one is known as simulations model. According to Murray (2018), simulation model is

defined as creating a model that is based on the real world. This model allow us to do some

experiments on the model to see how the changes affect the overall cost of the logistics network.

32
For example, by changing the constraints on the network, it is possible using a simulation model

to see how this affects the cost-effectiveness of the overall network. In addition, to ensure the

simulation model is effective, certain activitity need to be performed. For example, collect

significant amounts of data on transportation, warehousing, labor costs, material handling, and

inventory levels, so that when you make changes to the constraints, the model accurately reflect

the changes. This type of model is very useful when companies have made general decisions on

the network and want to see what the overall effect of any changes will be.

Lastly, there is heuristic model. Murray said that this model is more less the same with simulation

model, yet this model doesn’t generate an optimum solution for a logistics network. A heuristic

model is used to reduce a large problem to a more manageable size. Even, this model often referred

as a rule of thumb for designing the logistics network. For example, a heuristic model can be used

to consider the best site for a distribution center that is at least ten miles from the market area, fifty

miles from a major airport, and more than three hundred miles from the next closest distribution

center (Murray, 2018).

2.7 Transport Planning for Reverse Logistics

Designing transportation planning for industrial supply chain cannot be separated from the

function or elements in the supply chain. A supply chain includes the business activities like

getting the final product to the customer or end user or even from end customer back to the

manufacturer. Managing the supply chain activities is important to ensure the flow of product is

smooth.

33
Supply Chain Mangement is primarily concerned with the efficient integration of suppliers,

factories, distribution centers, warehouses and stores so that merchandise is produced and

distributed in the right quantities, to the right locations and at the right time to minimize total

system cost subject to satisfying some service requirements (University of Texas at Dallas, n.d).

In addition, one of the element in supply chain which is crucial is logistics related activities.

Logistics activity can be divided into two categories which is forward logistics and reverse

logistics.

2.7.1 Difference Between Forward Logistics & Reverse Logistics

Generally, forward logistics is referred to process of delivering the finished goods to the customer

or sending the final product from one origin to many final destinations. Traditional or forward

logistics deals with the flow of products from the factory to the consumer (Tom, 2017).

Whereas, reverse logistics has been defined as the movement of product or materials in the

opposite direction for the purpose of creating or recapturing value, or for proper disposal (Roger

& Tibben-Lembke, 2002). In addition, forward and reverse logistics are two different things that

can be seen through their main function or activity involved in the supply chain.

34
2.7.1.1 Forward Logistics and Reverse Logistics Destinations

As mentioned above, forward logistics can be defined as the activity of delivering the finished

product from one origin to many destinations or customer. One of the largest differences between

forward and reverse logistics is the number of origin and destination points (Fleischmann, 1997).

Furthermore, in forward logistics the routing is clear. Meaning to say that the finished goods will

be sent to the distribution center and when it arrived at distribution center then decision will be

made to send the goods to distribution center’s customer. In other words, the finished goods will

be delivered from the distribution center to its customer based on their needs. According to Ronald

et al., (2002) which customer, and when, will be determined based on customer needs. However,

for make‐to‐order environments, cross‐dock operations, and urgent shipments (in a make‐to‐stock

environment), the name and location of the destination of the inbound shipment are known at the

time the product arrives at the facility.

However, reverse logistics’ activity seems complicated compare to forward logistics in term of the

destination to return the product. According to Ronald et al., (2002) a reverse logistics facility may

need to spend a significant amount of time determining where a particular item will be shipped. In

fact, the reverse movement of a product is the opposite, from many origins to one destination. It

should be remembered that every movement requires transportation and for sure it’s incurred cost.

If replacement product is being sent, a third transportation charge is incurred (Mollenkopf &

McCormick, 2010). Therefore, Mollenkopf and McCormick said that effective returns

management should be performed as it will provide additional means of positively impacting

firm’s financial performance as well as building stronger relationships with key customers (2010).

35
2.7.1.2 Pricing Rates

In forward logistics selling the finished product to the customer will incurred different price rates.

The price may vary due to some factors like total purchasing quantity of all product and size of the

customer’s purchase quantity. Ronald claimed that if new product of uniform quality is sold at

different prices for different customers, the range of prices that an item in the reverse flow is sold

for is even greater because of the fact that not all product in the reverse flow is first quality (2002).

In other words, the price of new and return product are not uniform. Companies’ return-process

center that selling to brokers must organize product into lots of similar product in similar condition

for brokers to bid on. Because reverse flow product is often not in new condition, brokers often

want to inspect the product before bidding on it. This could lead to delay when the inspection is

conducted and will make the competitive buyer that can purchase at high price run away. Some of

the products that are arrived at the centralized return center usually will be returned back to the

manufacturer or sold to any broker that has the intention to repair the product and sell it into certain

region that they think has the potential. Moreover, the cost of returning the unwanted product will

be expensive than the new product. Thus, managing return flow usually requires a specialized

infrastructure and relatively high handling cost and time (Ko & Evans, 2005).

36
2.7.1.3 Difficult to Forecast

Furthermore, forecasting for the forward and reverse logistics are significantly different. Ronald

said that planning for reverse logistics is made more difficult than planning for forward distribution

by the greater uncertainty involved in reverse logistics (2002). And he stated also that in the retail

context, future planning and forecasting for reverse logistics are made difficult because individual

customers ultimately initiate reverse logistics activities. According to Ko & Evans (2005) even a

3PL cannot forecast with much certainty who its clients will be, and hence the location of the

clients’ manufacturing facilities or the clients’ markets, the volume of the products to be handled,

or even the products themselves. The flow reverse logistics tends to follow the trend in forward

logistics yet not fully the same with the flow of forward logistics. However, reverse logistics could

take an advantage from the trend information like sales trend and promotion.

Such information could help to plan the network or flow of the product to the centralized return

center and back to the manufacturer. Further complicating the forecasting in this context is the fact

that different products will have very different returns rates (Roger & Tibben-Lembke, 2002).

According to Ronald (2002) customers’ decisions to return product will be influenced by factors

such as the ease of operating the product, the clarity of the instructions, and buyers’ regret, factors

which may vary significantly from one product to the next, within one manufacturer. Therefore,

able to identify the reasons behind the returning product by the customers will help to recognize

the chances for improving the process of supply chain and decision making.

37
2.7.1.4 Different Speed

In contrast, the delivery time for the finished product delivered to the customer is really affected

the satisfaction of the customer. Simply to say that it is important to serve the customer’s order

rapidly. If the company failed to fulfill the customer’s order within the promised time, then it will

give adverse effect toward the company. In forward logistics, the penalty to be paid for not

satisfying a customer may not be felt until much later, when the customer reduces future orders or

does not order at all (Roger & Tibben-Lembke, 2002). Nevertheless, in reverse logistics the nature

is differ from the traditional logistics. Meaning to say that, if there is delay in the flow of returns

processing product the customer will not complain said Ronald (2002).

Apart from that, customer satisfaction must be considered as well. If returns become a hassle for

the customer, the longevity or quality of the customer relationship may be impacted. Companies

that handle returns effectively—by working with customers to resolve service issues—can actually

improve a customer’s loyalty to their firm (Mollenkopf & McCormick, 2010). In addition, Ko &

Evans (2005) stated that good management of reverse logistics which is in product returns would

allow not only for savings in inventory carrying cost, transportation cost, and waste disposal cost

due to returned products, but also for the improvement of customer loyalty and futures sales.

38
2.7.1.5 Differences in Visibility of Costs

Previously, it stated above that the cost of forward and reverse logistics are different, with different

risk and way to manage it. In forward logistics, the cost is can easily be forecasted and determine

through the trends, like transportation, value of goods, sales, promotion, certain event, and etc.

Simply to say that in forward logistics, costs are well defined and well‐known (Roger & Tibben-

Lembke, 2002). Furthermore, some of the cost that related to forward logistics are inventory cost,

transportation cost, damaged or shrinkage cost and etc. Roger and Tibben-Lembke (2002) added

that the inventory costs of forward logistics can be broken into several broad categories which are

ordering, transportation, handling, and holding costs. As an example in 1998 US companies spent

$898 B for supply chain activities, and these numbers became $1397 B, 10.1% of GDP, 48% for

transportation and 35% for inventory in 2007 (University of Texas at Dallas, n.d).

Besides, the cost of placing an order is one of crucial factor in forward logistics for determining

frequency of ordering a product, and how large an order to place. Conversely, in reverse logistics,

the major cost is the transportation cost (Roger & Tibben-Lembke, 2002). To assume, the

transportation cost of reverse logistics generally will be higher than forward logistics. This is due,

in part, to the fact that the reverse shipments tend to be much smaller. For example, Roger &

Tibben-Lembke (2002) stated that a store may receive full truckloads of new product inbound

each week, but return only one or two pallets of reverse material in that same amount of time.

39
Moreover, the handling cost in reverse logistics is higher due to the fact that the volume of product

being shipped is small and it mean it requires more material cost. In addition, reverse logistics

mostly requires additional expenses when dealing with shipment like handling material e.g. pallets.

For the inventory holding cost, reverse logistics seems to have lower cost. This is because the fact

that the value of the product that have been returned may considered have low percentage in value

compare to new product. Therefore, inventory theory would predict that holding costs as a percent

of value would be much smaller for reverse logistics product. (Roger & Tibben-Lembke, 2002).

And according to Mollenkopf & McCormick (2010) by contrast, a reverse logistics flow is much

more reactive, with much less visibility.

2.7.2 Reverse Logistics Network Planning

Reverse logistics has different flow of product that require a good transportation planning to make

sure an efficient and effective movement. The process of collecting and returning the item to the

centralized return center (CRC) could take a long journey and even time consuming as well as

quite expensive. In conventional supply chains, logistics network design is commonly recognized

as a strategic issue of prime importance (Chopra & Meindl, 2001). Moreover, the location of

production, storage, and cross-dock facilities, and the selection of transportation links between

them, are major determinants of supply chain performance systems (Fleischmann, Bloemhof-

Ruwaa, Beullens, & Dekker, 2004). In short, Fleischmannl et al., (2004) stated that at the same

time, logistics network design has a fundamental impact on the profitability of reverse logistics.

40
 Figure 6 Illustration of Closed, Open and Inter-depot Routes

While in the classical multi-depot periodic vehicle routing problem with interdepot routes

(MDPVRP) all routes have to start and end in the same depot (closed routes), in the MDPVRP

with inter-depot routes (MDPVRPI), vehicles can renew their capacity in any depot in order to

continue delivering or collecting materials without being forced to return to their base depot before

the end of the working day. Hence, routes can start and finish at different depots enabling a vehicle

rotation composed by inter-depot routes. The concepts of closed, open and inter-depot routes are

illustrated in Figure 6. While closed routes have to start and end at the same depot,

an open route ends at a different depot. The difference between an open and an inter-depot route

is that in the latter a rotation has to be defined in order to get the vehicle back to its home depot.

A rotation is a set of inter-depot routes that can be performed consecutively until the home depot

is reached. In all the above works, the objective function is defined as the minimization of either

the total distance traveled or the total routing cost.

41
The used products and demand for reusable product are seen as logistics link between two market

interfaces that make up the structure of infrastructure. Moreover, Fleischmann et al., (2004)

mentioned that this link encompasses the reverse channel functions namely collection, testing and

sorting, re-processing, and re-distribution. Based on the figure 7, the structure or layout seems to

have many directional routes. However, from a logistics perspective, one may characterize the

structure as a many-to—many distribution network. From the layout it can be seen that the inbound

part reflects the process of collection and acquisition function, and the outbound part function as

distribution. And the intermediate host the real transformation process.

Fleischmann et al., (2004) argued that this broad scope does not mean that the entire network is,

or should be, managed by a single company. In other word, the responsibilities may be allocated

to multiple players, e.g 3PL, 4PL and etc..

Figure 7 Reverse Network Structure

42
 CHAPTER III

METHODOLOGY

3.0 Overview

In this section, the methodology for this research is discussed. Generally, the process of conducting

the research and developing the literature review is through the development of Systematic

Literature Review (SLR). This method seems to be suitable for this research. When a stand-alone

literature review is conducted using a systematic, rigorous standard, it is called a systematic

literature review (Okoli & Schabram, 2010). Moreover, the SLR for this research is not the same

like the experienced writers or authors as well as more formal educational programs for doctoral

authors. The difference is that the outline of the literature review in a student thesis is similar to

that in a regular published research article, it structure is not entirely the same (Kwan, 2006). Hart

(1999) presents four purposes for the literature review in a thesis: it synthesizes the understanding

a student has on their particular subject matter, it stands as a testament to the student’s rigorous

research dedication, it justifies future research (including the thesis itself), and it welcomes the

student into scholarly tradition and etiquette (Bruce, 2001). Thus, this research is for educational

purposes to get a better understanding on the field of routing for supply chain.

43
 Table 3
Online sources

3.1 CONCEPTUAL FRAMEWORK

PHASE ACTIVITIES RESULT

1. Conductliteraturereview that related to
Phase1 Route Transport Model
1. List of Journal
Conceptual Study 2. Identify the related Route Transport
Planning model for industrial supply chain

Phase 2 1. Analyzing the factor that affect

development of route transport planning 1. Comparison of route
Analyzing the models transport planning model
2. Analyzing the route transport planning
model

Phase 3 1. The compared

1. Do comparison of the journal journal based on the
Comparison of the route based on the model
planning model model

Figure 8 Research Activities

44
Prior to the development of the methodology of the route transport planning model, the research

activities of this thesis is explained. Generally, the research activities comprise of three phases

which are the conceptual study, analyzing the model and Comparison of the route planning model.

The three phases are adapted from the Design Science Research Method (DSR) of Peffers et. al

(2007) which are linked with comprehensive activities in accomplishing the objectives. Figure 5,

ilustrates the entire research activities that reveals the linkages between the different stages and

the main outcome of the study. Therefore, this study started with the review of literatures on route

transport planning model for industrial supply chain and finding of the data from online resources

to identify the related transport planning model. This process was accomplished before the next

stage established.

The second phase provide the understanding on the development via explaining related processes

involved and determined the model that is related to industrial supply chain. The process of

analyzing is aimed to understand the function of each model as well as defining the factor that

affecting the designing of route transport planning model. Moreover, the review on existing model

has been conducted so as to gain deeper understanding of possible integrated route transport model

that can be used. Also, once the information is obtained, the next step was critically compare the

existing model to gain clear overview of the model in which can be used to develop a new route

model.

45
The third phase is deal with an evaluation of the study. After identifying the factors that affecting

the designing of route transport planning which was obtained from online resources, the data were

then analyze. Analyzing of data takes a lot of time to split and categorize the model based on their

function and interrelation with supply chain. Through these activities, then the evaluation of the

model being compared is conducted. The evaluation comprised the potential of the model for

specific activity in supply chain industry. Eventually, based on the model being evaluated, the

development of new model is conducted.

CHAPTER IV

DICUSSION

4.0 Finding

On this section, the discussion of the finding based on the systematic literature review is spelled

out. The discussion of the finding is mainly focus on how the data being gathered and translated

into meaningful information. The finding will be discussed on the way the information being

gathered. Hence, below is the finding of the research.

46
 TABLE BASED ON YEAR
Table 4
Web Journal

Website 2010 2011 2012 2013 2014 2015 2016 2017 2018

Integrated 25200 49200 24700 49600 22200 44300 20200 35600 22100
transport
planning
Supply 591000 786000 521000 655000 394000 419000 150000 147000 570000
chain
Reverse 2700 2900 3110 3560 3860 3820 3950 4320 2870
logistics
routing
Routing 16200 18300 15300 22800 17900 22800 16600 23200 14500
supply
chain
Halal 371 433 511 600 714 875 1040 1180 802
logistics
Green 63200 12600 91700 145000 73000 107000 43000 60400 33000
supply
chain

Based on the research being done, the finding that has been generated is coming from the analysis
of journal and article that is available in internet. Thus, the above table is showing the number of
keywords or topics that have been searched. The data and the information gathered are base from
the period of 2010 until 2018. Moreover, the table illustrates the trends of the topic that have been
posted in the internet. Those are some of the topics that are related to the study are integrated
transport planning, Supply chain, Reverse logistics planning, and Routing supply chain. Its clearly
can be seen that’s has the gaps between the years.

47
 Integrated Transport Routing
60000

50000

40000

30000

20000

10000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018

Series 1

Figure 9. Integrated Transport Planning

The graph shows the number of integrated transport planning journal article that have been
published started from period of 2010 until 2018. It can be seen that the totals resources that’s
stated has changed from year to years. In 2010 the results of articles resources were 25200 items
that have been written related about integrated transport planning. Then it increased in year 2011
to the 49200. However, going decrease in 2012 where as the results is 24700. But in 2013 increase
dramatically in this period with result 49600. But a year later in 2014, it dropped to 22200. In 2015
the results rose steadily to 44300. The next years it is declined to 20200 in 2016. It’s the lowers,
because the researcher didn’t find the any related category which is suitable. In 2017, the results
there was an improvement of journal article that is related to the keywords which is about 35600
but decline in 2018 to 22100.

48
 Supply Chain
900000

800000

700000

600000

500000

400000

300000

200000

100000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018

Series 1

Figure 10. Supply Chain

The above graph shows the number of periods whereby the number of journals related to supply
chain being published electronically in the internet. The results are shown large number of study
being conducted by many researchers related to the keywords..In year 2010 the amount of
resources is 591100 from web journal have been written up. Becoming higher in 2011 with 786000
journals being published. In ten years observation that’s the higher. Then it was dropped to 54000
in 2012. But slowly increase to 655000 in 2013. For the 2014 and 2015 can be quite low with the
result 394000 and 419000. But then fall drastically in 2016 and 2017 with the result amount being
research by researcher was 150000 and 147000. However, it rising up in 2018 with resulting
22100. Its shown that’s people becoming more interested to known more about supply chain
nowadays.

49
 Reverse Logistics Routing
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2010 2011 2012 2013 2014 2015 2016 2017 2018

Series 1

Figure 11. Reverse Logistic Routing

For some reasons the term of reverse logistic routing may be sounds strange by people who are
not in this area of study or career. Started from 2010 until 2018 we can see that the results are
consistently increase. To elaborate more detail about the graph we start from 2010. The result are
2700 sources that talked about the keywords. In keep rising in 2011 with amount 2900. People are
more attractive to research about reverse logistics, through that in 2012 the amount are 3110. Next,
in year 2013 it increased to 3560. After that, in 2014 the total website write about reverse logistic
routing up to 3860. In 2015, it little bit slow, drop to 3820. But then, rise up again to 3950 in 2016.
The higher resulting in 2017 with total amount 4320. However, the graph going fall in 2018, with
the total 2870. From the analysis it could be assumed that the keywords and journals for reverse
logistic routing are actually become interesting topic in logistic from year to years.

50
 Routing Supply Chain
25000

20000

15000

10000

5000

0
2010 2011 2012 2013 2014 2015 2016 2017 2018

Figure 12. Routing Supply Chain

Based on our survey from 2010 until 2018. People are known well about the Routing supply Chain.
The graph also shows a great number of the topic being published. In 2010, the amount was 16200.
It rising to 18300 in 2011. However, going down in 2012 with total amount resources is 15300. In
2013 the keywords are write up the highest with amount 22800. After that, it was slowly dropped
to 17900 for the year 2014. The issues are more attractive in 2015 with the amount resources is
22800. But then, decline again in the next year in 2016 with total amount 16600. In 2017 it reached
about 23200 journals being posted but fell down in 2018 with amount 14500. In conclusion, the
topics are interesting to be research. The scope is huge and people can use the input to increase
our routing of supply chain.

To conclude, this chapter is discussing the finding and presented them in table and graphic format.
Literature was used to indicate similar findings. This research is more likely to find the sources
then we build the graph to show the finding. We captured and represented the data according to
amount research resulting. The finding has faced many challenging and limitation. The limitation
is more like time and sources. Not all sources can be access directly.

51
Some requires certain conditions like payment for getting the data. The time we need to research
all the finding really take a lot of time and we don’t have much time to accomplish it, in order to
develop a more comprehensive research. However, we managed to create the finding properly and
illustrated it into the graph by year.

CHAPTER V

CONCLUSION

5.0 Overview

This chapter concludes the thesis. A summary of the research conducted is presented, focusing on

the achievement of each objective outlined in the first chapter. This research summary highlights

on how analyzing and comparing the model carried out were able to provide the information about

the routing of transportation. This research also discussed the factors that affect the routing of

transportation, like policy, social networks, technology and environment. Moreover, supply chain

& logistics modelling technique was discussed. This showed that the optimization process for the

integrated should be focus based on the functionality or needs of the party. This chapter concludes

the thesis by stating several limitations of study.

5.1 Limitations of Study

Through the process of doing the research there are several limitations that is faced. The first is

limitation of time, because of time limitation we realized that the discussion of the research is not

that comprehensive and detail. Furthermore, the limitation to quickly adapt with new type of

research is become another factor that contributed to the quality of the research itself. As

52
previously the researchers are never being exposed or taught about qualitative research, yet willing

to take the challenge and opportunity of this study. Therefore, due to some of the limitations,

further study need to be done to make this research become more comprehensive and

meaningfulness.

53
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optimisation-whats-difference/
Bruce, C. (2001). Interpreting the scope of their literature reviews: Significant differences in. Retrieved
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Chopra, S., & Meindl, P. (2001). Supply Chain Management: Strategy, Planning and Operation.
(Illustrated, Ed.) Prentice Hall. doi:0130264652, 9780130264657
Cristini, M. (n.d). The Role of Transportation in Supply Chain Management. Retrieved March 18, 2018,
from Eye Freight: https://eyefreight.com/the-role-of-transportation-in-supply-chain-
management/
Donati, A. V., Montemanni, R., Casagrande, N., Rizzoli, A. E., & Gambardella, L. M. (2008). Time
dependent vehicle routing problem with a multi ant colony system. European journal of
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