Transcript Document
Transportation Dickson K.W. Chiu PhD, SMIEEE Text: Ballou - Business Logistics Management, 5/E (Chapter 6,7) 1 Learning Objectives To understand some basic domain knowledge of transportation To anticipate typical problems involved in transportation planning and decisions Dickson Chiu 2006 Transport-2 4a.1 Transport Fundamentals Business Logistics Management, 5/E (Chapter 6) 3 Transport System Defined Performance Average transit time Transit time variability Loss and damage Other factors including availability, capability, frequency of movement, and various less tangible services Cost Line haul Terminal/local Accessorial or special charges Dickson Chiu 2006 Transport-4 Transport Choices Primary intercity carriers Air Truck Rail Water Pipe Small shipment carriers Agents Coordinated services Piggyback Birdyback Fishyback UPS Federal Express Postal services Bus Package Express Freight forwarders Shipper associations Others Dickson Chiu 2006 Autos Bicycles Taxis Human Electronic !! Transport-5 Importance of Modes by Products Hauled Air - very high-valued, time sensitive products Truck - moderately high-valued, time sensitive products. Many finished and semi-finished goods Rail - low-valued products including many raw materials Water - very low-valued products moved domestically, high -valued if moved internationally Pipe - generally limited to petroleum products and natural gas Dickson Chiu 2006 Transport-6 Importance of Modes by Volume Moved Transportation mode Railroads Trucks Inland waterways Oil pipelines Air Total Percent of total volume 36.5% 24.9 16.3 22.0 0.3 100.0 Dickson Chiu 2006 Transport-7 Performance vs Cost Air generally fast over long distances and a fair degree of relative variability Water is very slow and moderately reliable Pipe is very slow but reliable Truck is moderately fast and reliable Rail is slower and less reliable than truck Mode Rail Truck Water Pipeline Air Dickson Chiu 2006 ¢/ton-mile 2.28 26.19 0.74 1.46 61.20 Transport-8 Rate Types Line haul rates Class Specific rates for given shipment sizes for specific products moving between designated points Special service charges Contract rates Drayage (local delivery) Commodity and contract rates Freight classification of items Rate tables of tariffs Extra charges Stop-off privilege example Private carrier costing Dickson Chiu 2006 Transport-9 Rate Profiles by Distance Dickson Chiu 2006 Transport-10 Rate Profiles by Volume Dickson Chiu 2006 Should always check to see if shipment can be declared at the next higher weight break for a lower rate and lower total charges Transport-11 4a.1 Transport Decisions Business Logistics Management, 5/E (Chapter 7) 12 Typical Transport Decisions Mode/Service selection Private fleet planning Carrier routing Routing from multiple points Routing from coincident origin-destination points Vehicle routing and scheduling … Freight consolidation Dickson Chiu 2006 Transport-13 Mode/Service Selection The Problem Define the available choices Balance performance effects on inventory against the cost of transport Methods for selection Indirectly through network configuration Directly through channel simulation Directly through a spreadsheet approach Dickson Chiu 2006 Transport-14 Carrier Routing Determine the best path between origin and destination points over a network of routes Shortest route method is efficient for finding the minimal cost route (cf. taught in algorithm course) The procedure can be paraphrased as: Find the closest unsolved node to a solved node Calculate the cost to the unsolved node by adding the accumulated cost to the solved node to the cost from the solved node to the unsolved node. Select the unsolved node with the minimum time as the new solved node. Identify the link. When the destination node is solved, the computations stop. The solution is found by backtracking through the connections made. Dickson Chiu 2006 Transport-15 Mapquest Solution Mapquest at www.mapquest.com CR (2004) Prentice Hall, Inc. Dickson Chiu 2006 Transport-16 Routing from Multiple Points This problem is solved by the traditional transportation method of linear programming 4a Supplier A Supply 400 7 Plant 1 Requirements = 600 6 5 5 Supplier B Supply 700 5 Plant 2 Requirements = 500 9 5 8 Plant 3 Requirements = 300 Supplier C Supply 500 . The transportation rate in $ per ton for an optimal routing between supplier A and plant 1 a Dickson Chiu 2006 Transport-17 Routing with a Coincident Origin/Destination Point Typical of many single truck routing problems from a single depot. Mathematically, a complex problem to solve efficiently. However, good routes can be found by forming a route pattern where the paths do not cross - a "tear drop" pattern D D Depot Depot (b) Good routing-no paths cross (a) Poor routing-paths cross Dickson Chiu 2006 Transport-18 Single Route Developed by ROUTESEQ in LOGWARE Y coordinates Y coordinates 8 7 8 4 9 6 5 42 D 5 3 12 1 2 3 4 5 X coordinates 6 42 17 3 (a) Location of beverage accounts and distribution center (D) with grid overlay CR (2004) Prentice Hall, Inc. 15 20 18 8 D 5 12 17 3 1 7 19 6 18 11 14 13 16 10 2 7 9 6 20 5 3 1 01 0 15 8 4 7 19 10 6 2 13 16 7 01 8 0 1 2 11 14 3 4 5 X coordinates 6 7 8 (b) Suggested routing pattern Dickson Chiu 2006 7-14 Transport-19 Multi-Vehicle Routing and Scheduling A problem similar to the single-vehicle routing problem except that a number of restrictions are placed on the problem. Chief among these are: A mixture of vehicles with different capacities Time windows on the stops Pickups combined with deliveries Total travel time for a vehicle Heuristic solution (see textbook) “Sweep” Method “Savings” Method Dickson Chiu 2006 Transport-20 One Example Methodology Warehouse Funeral home Determine typical weekly demand and pickups Divide territories of equal size to minimize number of trucks Route design within territories CR (2004) Prentice Hall, Inc. Dickson Chiu 2006 Transport-21 Freight Consolidation Combine small shipments into larger ones A problem of balancing cost savings against customer service reductions An important area for cost reduction in many firms Based on the rate-shipment size relationship for forhire carriers Cheaper, but what about the service effects of holding early orders for a longer time to accumulate larger shipment sizes? Dickson Chiu 2006 Transport-22 4a.3 Summary 23 Summary Much domain knowledge required Scheduling and planning involves cross-disciplinary knowledge artificial intelligence, algorithms, optimization … Note the data / information requirements and how IT helps to collect / integrate the data for calculations and decision making Note many elementary methods are just static planning beforehand – more advanced dynamic handling required to handle exceptions and violation of assumptions (e.g., traffic jam / accident, order cancellation) Note the quality of service implication, especially service delay Dickson Chiu 2006 Transport-24