Simulation based decision support system for optimization : A case of Thai logistics service provider

Purpose – The purpose of this paper is to understand and explain how firms use simulation-based decision support systems (DSSs) to optimize container space utilization. Design/methodology/approach – Using a case study of a logistics company, this research analyzed the application of optimization software through simulation to make efficient loading decisions. The current study attempted to find a method for optimizing and making a loading plan to achieve higher container space utilization using a simulation method. Findings – A simulation-based DSS and application of an optimization method contributes to the reduction of container shipment volume, and saves logistic costs and its delivery time. This research offers a method for optimizing a loading decision to optimize container space utilization. Research limitations/implications – The present study is based on a single case study of only one specific type of product, i.e., motorcycle spares parts within a specific industry. Practical implications – Apart from adding value to the shipment process and improving the efficiency of loading plans, with the use of optimization software, the collaboration between buyers and suppliers can be encouraged to reduce response time and bringing transparency in the pricing process of the shipment. Originality/value – This research addresses a key concern in the transportation industry: how to reduce the logistics costs and the delivery time. This study demonstrates how a simulation-based tool can be used to reduce freight cost, cycle time, instill waste minimization and improve overall value addition.