Developing a Framework for the Optimization Processes of Logistics Costs: A Hurwitz Criterion Approach

Xinfeng Yan, Shakhrukh Madjidov, Habiba Halepoto and Muhammad Ikram

SAGE Open, 2021, vol. 11, issue 4, 21582440211054499

Abstract: The logistics department is one of the critical departments for most industries that play a critical role in their business objective. Therefore, this study develops a framework by considering the problem of optimization processes of multiple decision-making regarding the choice of any logistics in the frame of the present logistics system. We employed the theoretic game called Game with nature model for analysis. We took this process a step further and utilized the Hurwitz criterion as the optimality criterion synthetic, which is under consideration, for mixed strategies that allow obtaining their optimality with a joint position of winnings and risks is being used. This study demonstrates the vital approach to the optimization processes that is precise, concurrent, with similar risks and winnings. Since the developed criterion was defined for solving games with nature from a joint point of view, whereas, at the same time choosing the optimal strategy both for gains and relative to risks. This study provides strategy guidelines for managers to reduce their logistic costs as well as optimize the logistics and supply chain processes.

Keywords: optimization processes; logistics; Hurwitz criterion; a game with nature; winnings; risk (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:11:y:2021:i:4:p:21582440211054499

DOI: 10.1177/21582440211054499

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