Logistical activities in the function of development of the shipbuilding industry

Abstract

This paper examines the impact of supply on production results in the shipbuilding industry. The shipbuilding industry is characterized by extreme complexity, as the integration of many other industries is required, and the industry’s product itself is highly complex and expensive, requires a high degree of processing and subsequently yields significant revenue. Since numerous suppliers are involved in the production process, shipbuilding has a multiplicative effect on other industries. Logistics are one of the fundamental factors for the industry’s efficient and effective operation. Supply is considered in this paper as it is nowadays a strategic decision that actively influences business success in the shipbuilding industry. The purpose of the simulation of its impact on the production process is the avoidance of possible mistakes that could not only weaken a company's competitive position, but endanger its viability as well. The simulation ends with a concrete example illustrating that time deviations (arrivals, withdrawal and complaints) increase the basic value of the order to a certain extent. This paper highlights the need to maximize the speed of response to customer needs through the synthesis of planning activities and business logistics, and to remain competitive in an increasingly demanding global market.