“…It is determined by number of elements (amount, extent) that make up the supply chain system, variety (differentiated) and uncertainty (predictability of changes) (Hsiao et al , 2006; Milgate, 2001). There are four main sources of logistics complexity that can plague a firm in a supply chain (see Table III):- upstream sources such as number of suppliers, volume, time and material quality and uncertainty about number of suppliers, volume, time and quality (Bozarth et al , 2009; Choi and Krause, 2006; Meyr and Stadtler, 2005; Rao and Young, 1994; Van der Spiegel et al , 2005; Van der Vorst and Beulens, 2002);
- internal sources related to manufacturing such as volume of throughput, output, product quality and uncertainty about volume, output, and quality (Meyr and Stadtler, 2005; Rao and Young, 1994; Van der Spiegel et al , 2005);
- internal sources related to distribution such as volume of distribution, and uncertainty about volumes (Bozarth et al , 2009; Van der Spiegel et al , 2005; Van der Vorst and Beulens, 2002); and
- downstream sources related to customers and distribution, such as demand volume, and uncertainty(Chen et al , 2000; Leeuw et al , 1999; Meyr and Stadtler, 2005; Rao and Young, 1994; Van Damme and Van Amstel, 1996; Van der Vorst and Beulens, 2002; Wanke and Zinn, 2004).
A number of authors mention that the logistics outsourcing decision is positively related to supply chain complexity (Hsiao et al , 2006; Milgate, 2001; Rao and Young, 1994).…”