Académique Documents
Professionnel Documents
Culture Documents
Outline
The role of transportation in the supply chain Factors affecting transportation decisions Modes of transportation and their performance characteristics Design options for a transportation network Trade-offs in transportation design Tailored transportation Routing and scheduling in transportation Making transportation decisions in practice
Information
Pricing
Shipper (party that requires the movement of the product between two points in the supply chain)
Transportation cost Inventory cost Facility cost
Transportation Participants
Economies of Scale The more items (weight) is transported, the less the transportation costs per item (unit of weight)
$100/book
$.10/book
1000
Economies of Distance The larger the distance, the less the transportation costs per unit of distance (e.g., per mile)
$.10/mile
Transportation Cost per Mile Tapering Principle
$.05/mile
$50/mile
1 mile 500 miles Shipment Distance 1000 miles
Transportation Participants
I need something shipped at the lowest possible cost!
Transportation Participants
I need something shipped at the lowest possible cost! I need something delivered at the lowest possible cost!
Transportation Participants
Carriers: We have the equipment!
Transportation Participants
Carriers we can find a shipper! Shippers we can find a carrier!
Transportation Participants
the transportation system is vital for the countrys economic health
Transportation Participants
Transportation Participants
track shipments
Transportation Participants
track shipments
Transportation Participants
Creates demand for transportation by purchasing products
Air
Rail
high fixed costs (land, tracks) low variable costs (operating costs, e.g., labor, fuel) slow, but inexpensive way to transport heavy freight that doesnt require special handling, long distances Major Issues
Scheduling to minimize delays / improve service Off-track delays (at pickup and delivery end) Yard operations Variability of delivery times
Highway
Highway
LTL less than truckload TL truckload Specialty Major Issues Utilization Consistent service Backhauls
Package Carriers
Companies like FedEx, UPS, USPS, that carry small packages ranging from letters to shipments of about 150 pounds Expensive Rapid and reliable delivery Small and time-sensitive shipments Preferred mode for e-businesses (e.g., Amazon, Dell, McMaster-Carr) Consolidation of shipments (especially important for package carriers that use air as a primary method of transport)
Intermodal
Use of more than one mode of transportation to move a shipment to its destination Most common example: rail/truck Also water/rail/truck or water/truck Grown considerably with increased use of containers Increased global trade has also increased use of intermodal transportation More convenient for shippers (one entity provides the complete service) Key issue involves the exchange of information to facilitate