INFLUENCING FACTORS TO LOGISTICS CENTRE FORMATION – A STUDY OF VIETNAM-BASED LOGISTICS SECTOR

Abstract

Purpose of the study: The paper tries to model dynamic interactions of factors that contribute to the logistics center building. Conducting the desk review and expert consultation, the causality of the factors is systemized in a form of Causal Loop Diagram using the System Dynamics approach. Methodology: System Dynamics (SD) is an approach for studying interlinked behaviors within a system and reflects the interactions of feedback loops. Compared to other approaches, SD demonstrates the real world by using factors and stocks for components and feedback loops for inter-relationships among them. SD model qualitatively illustrates the causal relationship among factors that influence the building of the logistics center. Main Findings: A combination of four different sub-systems, using a questionnaire survey conducted with logistics service users and providers to sort out the high scored factors. Besides, the survey also helps to study the practical conditions and characteristics in showing the demand, the trend, and the development of logistics centers in Vietnam. Applications of this study: Logistics centers (LCs) can be considered as a depot for vehicles where drivers and managers of vehicles are supposed to maintain, repair vehicles, and adjust vehicle operation schedules. Novelty/Originality of this study: As defined by the scope of the project, the SD model provides a qualitative demonstration of the interaction among factors. The built model gives a systematic insight into how factors link to each other.