Logistics and Transportation in Global Supply Chains: Review, Critique, and Prospects

Abstract

Abstract A supply chain denotes the series of operations by which raw materials are trans-formed into components, subassemblies, and finished goods, and then moved through a distribution system to the ultimate user or consumer of the item produced. Product transformation and storage occur at nodes of the network. When those are in different countries or areas of the world, logistics and transportation (between nodes) become even more important. In this tutorial, we review and compare a number of research papers. All are inter-national in scope. Each article emphasizes one or more decisions or activities that distinguish a global supply chain. Some, such as location decisions and supplier selec-tion, are important for domestic supply chains but are more complicated in the inter-national arena. Major differences include border crossings and exchange rates. Other decisions, such as switching production from one country to another, are uniquely global and may depend upon tariffs, quotas, and local content restrictions. Following our rationale for the subset of literature that we chose, those articles are discussed, categorized, and compared in several complementary ways. An assessment is offered of the research conducted to date. Further studies that may be usefully undertaken are suggested.

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