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Accession Number PB2013-104946
Title Impacts of Freight Mode Splitting on Congestion, Risk, and Delivery Reliability.
Publication Date Sep 2012
Media Count 37p
Personal Author C. Perez J. Guenes
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.
Keywords Benefits
Cargo transportation
Multimodal transportation systems
Traffic congestion
Transportation modes

Source Agency Department of Transportation
NTIS Subject Category 91B - Transportation & Traffic Planning
43G - Transportation
85 - Transportation
Corporate Author Florida Univ., Gainesville. Dept. of Industrial and Systems Engineering.
Document Type Technical report
Title Note Final rept.
NTIS Issue Number 1312
Contract Number N/A

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