Risk Evaluation and Decision Modelling in Logistics Projects Using a Software Tool

Accepted in 21st IPMA World Congress: Project Management-Essential Reality for Business and Government, June 18-20, Cracow, Poland, pp. 337-340, ISBN: 978-83-89541-93-2

5 Pages Posted: 8 Apr 2016 Last revised: 21 Sep 2018

See all articles by Dimitrios Emiris

Dimitrios Emiris

University of Piraeus - Department of Industrial Management

Panagiotis Siskos

University of Piraeus - Department of Industrial Management

Dimitrios V. Siskos

ThinkingFinance; Embry-Riddle Aeronautical University

Date Written: June 18, 2007

Abstract

The decision of optimum location in the construction of a logistics (warehouse & distribution) center (or similar facilities) is frequently encountered in the business environment. On a purely logistical level (assuming minimal internal political considerations), this decision must take into account the uncertainties in the calculation of the transportation costs from the central location to peripheral (satellite) stores, the operating costs, the required capital investment and the cost of transportation subject to gas price fluctuations. This article addresses the above questions using an adequate software tool, and provides the methodological framework for the modelling of such business decisions; furthermore, it demonstrates the feasibility and the reliability of the proposed approach and corroborates its findings with a realistic example.

Keywords: Distribution Center, Uncertainty, Transportation, Optimization, Risk Management, Monte Carlo Simulation, Crystal Ball

Suggested Citation

Emiris, Dimitrios and Siskos, Panagiotis and V. Siskos, Dimitrios, Risk Evaluation and Decision Modelling in Logistics Projects Using a Software Tool (June 18, 2007). Accepted in 21st IPMA World Congress: Project Management-Essential Reality for Business and Government, June 18-20, Cracow, Poland, pp. 337-340, ISBN: 978-83-89541-93-2. Available at SSRN: https://ssrn.com/abstract=2759874 or http://dx.doi.org/10.2139/ssrn.2759874

Dimitrios Emiris

University of Piraeus - Department of Industrial Management ( email )

80, Karaoli & Dimitriou Str.
18534 Piraeus
Greece

Panagiotis Siskos

University of Piraeus - Department of Industrial Management ( email )

80, Karaoli & Dimitriou Str.
18534 Piraeus
Greece

Dimitrios V. Siskos (Contact Author)

ThinkingFinance ( email )

Thessaloniki, Kalamaria 55132
Greece

HOME PAGE: http://www.thinkingfinance.info

Embry-Riddle Aeronautical University ( email )

Worldwide College of Business
Worldwide Campus, FL 32114
United States

HOME PAGE: http://faculty.erau.edu/Dimitrios.Siskos

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