The distribution of economic profit between logistics system participants while transporting cargo by road and rail

Abstract

Existing approaches of choosing the transport mode in the logistics system have disadvantages. Firstly, they do not allow to determine the advisability of using transport modes taking implicit costs into account. Secondly, the requirements of the logistics system are not taken into account, including transportation reliability, immobilization, etc. The authors suggest to view economic profit as a performance criterion taking into account implicit benefits and costs of the logistics system that affect the decision of transport mode choice. The laws between logistics system participants' economic profit and distance using the road and rail transport in Ukraine were determined.