The Impacts of Freight Mode Splitting on Congestion, Risk, and Delivery Reliability

Geunes, Joseph; Perez, Cinthia

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The Impacts of Freight Mode Splitting on Congestion, Risk, and Delivery Reliability

2012-09-01
By Geunes, Joseph ; Perez, Cinthia

File Language:

English

Details

Creators:

Geunes, Joseph ; Perez, Cinthia
Corporate Creators:

University of Florida. Dept. of Industrial & Systems Engineering
Subject/TRT Terms:
Publication/ Report Number:

2011-023
Resource Type:

Tech Report
Geographical Coverage:

Florida ; United States
Corporate Publisher:

University of Florida. Center for Multimodal Solutions for Congestion Mitigation ; University Transportation Centers Program (U.S.)
Abstract:

Although splitting shipments across multiple delivery or transportation modes typically increases total shipping costs as a result of diseconomies of scale, it may offer certain benefits that can more than offset these costs. These benefits include a reduction in the probability of stock-out and in the average inventory costs, as well as a concurrent reduction in transportation congestion. We consider a single-stage inventory replenishment model that includes two transportation modes: a cheaper, less reliable mode that is congested, and another, more expensive but perfectly reliable mode. The high-reliability mode is only utilized in replenishment intervals in which the lead time of the less-reliable mode exceeds a certain value. This permits substituting the high-reliability mode for safety stock, to some degree. We characterize optimal replenishment decisions with these two modes, as well as the potential benefits of simultaneously using two delivery modes.
Format:

PDF
Download URL:

https://rosap.ntl.bts.gov/view/dot/25551/dot_25551_DS1.pdf
File Type:

[PDF - 838.37 KB]
Collection(s):

University Transportation Centers ; US Transportation Collection
Main Document Checksum:

urn:sha-512:991901572bd11a2543a0df4da0fd225548c8ba7d249239030af90eb0278df7faf752254c0006def63800e57bd02821f15cbfe984363d04ed78d2bcc0ad5fa2d6

File Language:

English

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