lect21 - Transportation Management Operational Networks...

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Chris Caplice ESD.260/15.770/1.260 Logistics Systems Nov 2006 Transportation Management Operational Networks
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© Chris Caplice, MIT 2 MIT Center for Transportation & Logistics – ESD.260 Agenda Economic vs Traditional Modes Operational Networks ± One to One ± One to Many ± Many to Many Example of Approximate Analysis
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© Chris Caplice, MIT 3 MIT Center for Transportation & Logistics – ESD.260 Traditional Transport Modes (US) Mode 2003 revenue ($B) Trucking 610 87% Rail 36 5% Intermodal 8 1% Pipeline 27 4% Air Freight 13 2% Barge 8 1% 702 100% US Transportation By Mode 2003 (702 $B) Trucking 87% Air Freight 2% Intermodal 1% Pipeline 4% Rail 5% Barge Trucking By Sub-Mode Private , 46% Truckload, 44% LTL, 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1975 1987 1999 2003 Trucking Air Freight Barge Note that these modes are all technology based – according to the type of power unit and guideways used.
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© Chris Caplice, MIT 4 MIT Center for Transportation & Logistics – ESD.260 The Transportation Product Four Primary Transportation Components ± Loading/Unloading ± Line-Haul ± Local-Routing (Vehicle Routing) ± Sorting Basic Forms of Consolidation ± Vehicle ± Temporal ± Spatial Driving Influences ± Economies of Scale ± Economies of Scope (Balance ) ± Economies of Density
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© Chris Caplice, MIT 5 MIT Center for Transportation & Logistics – ESD.260 B B Plant A Customer B The Transportation Product Loading/Unloading ± Key drivers: ² Number of items ² Time ² Stowability (Packaging) ± Not always symmetric B B Loading Unloading Linehaul B B Linehaul ± Key drivers: ² Distance ² Balance / Backhaul ± Impacted by network ² Congestion ² Connectivity
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© Chris Caplice, MIT 6 MIT Center for Transportation & Logistics – ESD.260 Regression of Long Haul TL Rates 95% Confidence Limits Independent Variable Coefficient Value Lower Bound Upper Bound (Constant) 116.84 107.57 126.12 Distance 1.10 1.097 1.101 OutBound Flag 9.04 5.48 12.61 Private Fleet Dist (0.17) (0.21) (0.13) Spot Mkt Dist 0.29 0.26 0.32 Intermodal Dist (0.29) (0.30) (0.29) Expedited Dist 0.15 0.13 0.16 High Frequency Flag (72.49) (78.44) (66.54) Monthly Flag (60.96) (64.44) (57.49) Quarterly Flag (36.33) (38.96) (33.69) $100M Buy Flag (19.2840) (23.85) (14.71) Regional Values XXX XX Explains ~77% Explains ~ 2% Explains ~ 7%
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© Chris Caplice, MIT 7 MIT Center for Transportation & Logistics – ESD.260 Plant A Customer B The Transportation Product Customer C Customer D B B C C D Vehicle Routing ± Key drivers: ² Number/Density of stops ² Vehicle Capacity ² Time ± Origin or Destination ² One to Many ² Many to One ² Interleavened
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© Chris Caplice, MIT 8 MIT Center for Transportation & Logistics – ESD.260 Inbound unloading Cross-Dock Terminal To D To E To F Outbound loading Inbound vehicles Outbound vehicles Material Adapted from Yossi Sheffi The Transportation Product E E F F D D E E D F F E E D D F F D D D D D E E E E E E F F F F F F Sorting ± Key drivers: ² Stowability (Packaging) ² Number of items ² Timing (Banking) From A From B From C
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© Chris Caplice, MIT 9 MIT Center for Transportation & Logistics – ESD.260 The Transportation Product Four Primary Transportation Components ± Loading/Unloading ± Line-Haul ± Local-Routing (Vehicle Routing) ± Sorting Basic Forms of Consolidation ±
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This note was uploaded on 12/06/2011 for the course ESD 1.260j taught by Professor Chriscapliceesd during the Fall '06 term at MIT.

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lect21 - Transportation Management Operational Networks...

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