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The critical factors in most cases are related to transportation, warehousing costs on the one hand and waste of time as a result of delays on the other. The optimal decision has to be reached considering the choice between centralized and decentralized inventory policies together with the choice of choosing the right combination of transportation modes. | Olli-Pekka Hilmola Bulcsu Szekely LOGISTICS DEVELOPMENT IN FINNISH AND SWEDISH COMPANIES WITH RESPECT OF RUSSIA AND FOUR ASIAN COUNTRIES TRAFFIC FLOW AND WAREHOUSING ANALYSIS FROM CURRENT SITUATION AND LIKELY DEVELOPMENT TRENDS LAPPEENRANTA UNIVERSITY OF TECHNOLOGY LAPPEENRANNAN TEKNILLINEN YLIOPISTO TUOTANTOTALOUDEN OSASTO TUTKIMUSRAPORTTI 175 RESEARCH REPORT LAPPEENRANTA UNIVERSITY OF TECHNOLOGY DEPARTMENT OF INDUSTRIAL ENGINEERING AND MANAGEMENT LAPPEENRANTA UNIVERSITY OF TECHNOLOGY Department of Industrial Engineering and Management Kouvola Research Unit Research Report 175 Olli-Pekka Hilmola Bulcsu Szekely Logistics Development in Finnish and Swedish Companies with Respect of Russia and Four Asian Countries Traffic Flow and Warehousing Analysis from Current Situation and Likely Development Trends ISBN 952-214- 283-2 paperback ISBN 952-214- 284-0 pdf ISSN 1459-3173 1 ABSTRACT It is evident that nowadays the centre of world trade is slowly shifting its place to Asia in general and to China in particular. Especially in manufacturing terms the change is obvious and this fact puts a significant pressure on cost efficient and lead time wise supply chain solutions. At the same time there is a massive imbalance in the traffic flows between continents. This is in most cases due to the supply chain strategies large multinational companies opt for. Many of them optimize their network by embracing local sourcing to achieve control and responsiveness in their supply chains. As a consequence plenty of manufacturing units in Europe must use expensive raw materials and semi-finished items. The critical factors in most cases are related to transportation warehousing costs on the one hand and waste of time as a result of delays on the other. The optimal decision has to be reached considering the choice between centralized and decentralized inventory policies together with the choice of choosing the right combination of transportation modes. From Asia to Europe to ship goods via