A DECISION-MAKING MODEL FOR CONTROLLING LOGISTICS COSTS

A lack of understanding of logistics costs, particularly in terms of their integrity and interdependence, allows for the interests of individual departments within a company, which are not always in line with the common interests of the business process of the company, to take precedence over necessary logistics cost planning. In order to address this problem, we have developed a model that takes into account all the logistical costs within a company and represents an important decision-making tool that can be used by employees at different levels of the organization, covering different business functions. We have tested the model on a specific product in a company that operates in the automotive industry and determined that the model enables us to have greater control over logistics costs and improves the quality of information on logistics costs.