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Article
Publication date: 5 February 2021

Effnu Subiyanto

This study aims to shed light on defining precisely variables of logistics costs model in Indonesia’s cement projects and generally other projects scientifically. The…

Abstract

Purpose

This study aims to shed light on defining precisely variables of logistics costs model in Indonesia’s cement projects and generally other projects scientifically. The variables have previously so far been identified based on pragmatism and practical experience without rigorous scientific and empirical findings. The models are deeply awaited by every project practitioner, especially project controllers, in Indonesia.

Design/methodology/approach

Data for the period 2010–2018 of eight cement projects were taken in quarterly and tested with a statistical tool EVIEWS10 to develop a robust proposed model. Investigating models were done by literature studies and empirical studies, and the results had been examined by statistical tests to be determined as robust or not-robust models. The certain period taken due to the availability data of the cement projects in which after 2018 was unavailable because the cement product is overcapacity in Indonesia.

Findings

The model proposed is resulted by synthesizing logistics literature and empirical from the cement projects in which the model consists of foreign logistics costs, domestic manufacture, and domestic logistics costs as the best findings to develop logistics model for the cement projects with a-10 independent variable. It significantly found the variable of foreign logistics costs have taken higher portions in the model, and therefore must be prior carefully anticipated.

Practical implications

To guide investors to alert with several important variables of logistics in Indonesia. As education that to invest in Indonesia, the best logistics model must prior be known to anticipate further uncertainty.

Originality/value

This study is advanced applied research of logistics models developed by author for future possibility implementation in the sector beyond cement projects.

Details

Journal of Science and Technology Policy Management, vol. 12 no. 2
Type: Research Article
ISSN: 2053-4620

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