Chapter 8 - Agenda Assignment Transportation Modes (Chapter...

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1 1 Agenda Assignment Transportation Modes (Chapter 8) The Modes of Transportation Chapter 8
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2 3 The Basic Modes of Transportation • The basic modes available to logistics managers are: rail motor water air pipeline Ton-mile – one ton of cargo carried one mile – standard statistical measurement used in the transportation industry Ton-miles Distribution U.S. Domestic Freight Market Share (percent of ton-miles in 1996 and 2005) Source: U.S. Department of Transportation, Research and Innovative Technology Administration, Bureau of Transportation Statistics, Transborder Freight Data, as of March 2007. 4 Factors Impacting Carrier Selection Decision Carrier Selection Determinants economics (i.e., rates/cost) transit time and reliability can be a competitive advantage lowers customers’ inventory costs capability accessibility security
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3 5 Performance Rating of Modes Selection Determinants Rail Motor Water Air Pipeline Cost 3 4 2 5 1 Transit time 3 2 4 1 --- Reliability 2 1 4 3 --- Capability 1 2 4 3 5 Accessibility 2 1 4 3 --- Security 3 2 4 1 --- 6 Intermodal Transportation Using two or more modes of transportation cooperating on the movement of shipment by publishing a through rate.
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4 7 Intermodal Transportation: Containerization • container-on-flat-car or trailer-on-flat-car – goods are untouched until arriving at the
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Chapter 8 - Agenda Assignment Transportation Modes (Chapter...

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