Supply Chain and Inventory Management Through Intermodal Logistics Analysis
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2016-06-01
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TRIS Online Accession Number:01625815
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Abstract:More collaboration is needed between transportation (trucking and rail) and industry. Often transportation requests are last minute decisions made by manufacturers many times with the expectation that trucks and/or trains are always available. The problem is made worse because the manufacturer has usually known weeks in advance of the need. As a result, this leads to increased logistics costs, reduction in efficiency, and can cause avoidable delays. Logistic costs increase due to the last minute requirement of finding drivers. Experienced, professional truck drivers are a vanishing breed. Efficiency is impacted because the options (all truck or truck and rail combinations) to meet the customer’s needs are greatly reduced and if the logistic company cannot allocate the necessary resources, delivery delays are certain. In addition, customer inventory management policy also has an impact on supplier operations. For example, if a customer only checks the levels of certain raw materials once a month. The customer adversely causes a demand spike for their supplier and the supplier must man their system to handle these instances. This project develops a web-based system (software and hardware) to help reduce costs through collaboration between trucking, rail and industry for domestic transportation. To achieve this, the concept of Vendor Managed Inventory (VMI) will be applied to the liquid and dry bulk freight industry. A software system called eVMI is developed to help decision makers alleviate the aforementioned issues with labor by reducing the number of long haul drivers required, reducing logistics cost by providing the logistic companies with data in a timely manner, improving safety by relying on rail for long distance transfers as opposed to using trucks, and helping to smooth both logistic requirements and supplier demand patterns. The project also provides a case study that illustrates how the toolset can be applied in a real setting.
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