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Logistics and Tools: Logistics and Tools: Transportation and Transshipment ModelsTransportation and Transshipment Models
TransportationTransportation
Rail low-value, high-density, bulk
products, raw materials, intermodal containers
not as economical for small loads, slower, less flexible than trucking
Trucking main mode of freight
transport in U.S. small loads, point-to-point
service, flexible More reliable, less damage
than rails; more expensive than rails for long distance
Transportation (cont.)Transportation (cont.)
Air most expensive and fastest, mode of
freight transport lightweight, small packages <500 lbs high-value, perishable and critical
goods less theft
Package Delivery small packages fast and reliable increased with e-Business primary shipping mode for Internet
companies
Transportation (cont.)Transportation (cont.)
Water low-cost shipping mode primary means of international shipping U.S. waterways slowest shipping mode
Intermodal combines several modes of shipping-
truck, water and rail key component is containers
Pipeline transport oil and products in liquid form high capital cost, economical use long life and low operating cost
Internet Transportation Internet Transportation ExchangesExchanges
Bring together shippers and Bring together shippers and carrierscarriers
Initial contact, negotiations, Initial contact, negotiations, auctionsauctions
ExamplesExampleswww.nte.comwww.freightquote.com
Transportation ModelTransportation Model
A transportation model is formulated for a class of A transportation model is formulated for a class of problems with the following characteristicsproblems with the following characteristics a product is transported from a number of sources to a a product is transported from a number of sources to a
number of destinations at the minimum possible costnumber of destinations at the minimum possible cost each source is able to supply a fixed number of units of each source is able to supply a fixed number of units of
productproduct each destination has a fixed demand for producteach destination has a fixed demand for product
Solution MethodsSolution Methods stepping-stonestepping-stone modified distributionmodified distribution Excel’s SolverExcel’s Solver
Transportation Method: ExampleTransportation Method: Example
Transportation Method: ExampleTransportation Method: Example
Problem Formulation Using Excel
Total Cost Formula
Using Solver from Tools
Menu
Solution
Modified Problem Solution
Transshipment Transshipment Model Model
Transshipment Model: SolutionTransshipment Model: Solution
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