Transportation Management Fundamental Conceptslect20-运输

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Transportation Management Fundamental Concepts

Transportation ManagementFundamental ConceptsChris Caplice ESD.260/15.770/1.260 Logistics Systems Nov 2006

Transportation Management Fundamental Concepts

AgendaIntroduction to Freight Transportation Levels of Transportation NetworksPhysical Operational Service

Impact of Transportation on Planning

MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Case Study: Shoes from ChinaHow should I ship my shoes from Shenzhen to Kansas City?Shoes are manufactured, labeled, and packed at plant~4.5M shoes shipped per year from this plant 6,000 to 6,500 shoes shipped per container (~700-750 FEUs/ year) Value of pair of shoes~$35

Map showing Shenzhen, China and Kansas City, US removed due to copyright restrictions.

MIT Center for Transportation& Logistics– ESD.260

Source: Chiu MLOG 2005

Transportation Management Fundamental Concepts

Pallets vs Slipsheets

Images of pallets removed due to copyright restrictions.

48 x 40 in. pallet is most popular in US (27% of all pallets—no other size over 5%) 1200 x 800 mm"Euro-Pallet" is the standard pallet in Europe

MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

ContainersCharacteristicsAirtight, Stackable, Lockable

International ISO Sizes (8.5’ x 8’)TEU (20 ft)Volume 33 M3 Total Payload 24.8 kkgImages removed due to copyright restrictions.

FEU (40 ft)Volume 67 M3 Total Payload 28.8 kkg

Domestic US (~9’ x 8.25’)53 ft longVolume 111 M3 Total Payload 20.5 kkgMIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Inland Transport@ Origin3 Port OptionsShekou (30k)Truck

Yantian (20k)Rail Truck

Hong Kong (32k)Rail Truck Barge

In Hong Kong9 container terminals

Figure by MIT OCW. MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Ocean Shipping Options40 shipping lines visit these ports each w/ many options Examples:APL– APX-Atlantic Pacific Express ServiceOrigins: Hong Kong (Sat) -> Kaohsiung, Pusan, Kobe, Tokyo Stops: Miami (25 days), Savannah (27), Charleston (28), New York (30)

CSCL– American Asia SouthloopOrigins: Yantian (Sat) -> Hong Kong, Pusan Stops: Port of Los Angeles (16.5 days)

CanadaCHINAKansas City DC

United States

New Kowloon

MexicoShenzhen Plant

Victoria

MIT Center for Transportation& Logistics– ESD.260

Figure by MIT OCW.© Chris Caplice, MIT

Transportation Management Fundamental Concepts

Inland Transportation in US

Port of New York

United StatesKansas City DC Port of Los Angeles/ Long Beach.

New York

Kansas City

Los Angeles

Port of Savannah

Savannah

Port of Miami

Mexico

Miami Figure by MIT OCW.

MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Port of New York/ New JerseyMaher TerminalExpress Rail II NS RRDouble stack thru: Harrisburg, Pittsburgh, Cleveland, Ft. Wayne, to Kansas CityMN

MontrealMI WI

Minneapolis/ St. Paul

Massena Toronto Syracuse AlbanyNY VT NH

Ayer

MilwaukeeIA

Chicago IndianapolisIL

Fort Detroit Buffalo Wayne PA Toledo Harrisburg Pitts

burghOH IN

WorcesterCT RI

NJ DE

ColumbusWV VA

NEW YORK/ NEW JERSEY

CSX RR (5-10 days)Double stack thru: Philadelphia, Baltimore, Washington, Pittsburgh, Stark, Indianapolis, to Kansas City

Cincinnati

Washington D.C.MD

Kansas City

East St. Louis Nashville

Norfolk

KnoxvilleTN

Memphis Little RockAR

Charlotte

NC SC

Birmingham Atlanta MeridianMS AL GA

Columbia Charleston Savannah JacksonvilleFL

CSX Norfolk Southern Canadian Pacific Canadian National Connections

Truckload (2.5– 3 days)NJ Turnpike to I-78W, I81S, I-76/70 to Kansas City

Mobile New Orlears

Tampa0 0 500 Km 500 Mi

Miami

Figure by MIT OCW. MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Truck& Intermodal OperationsOver the Road Truck Power Unit& 53’ TrailerPhotographs removed due to copyright restrictions.

Container on Flat Car (COFC) Double Stack

Trailer on Flat Car (TOFC)MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Air Freight

Photographs removed due to copyright restrictions.

MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Transport OptionsSo how do I ship shoes from Shenzhen to Kansas City? What factors influence my decision? Consider different types of networksPhysical Operational StrategicMIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Transportation NetworksUNITED STATES

Atlantic Ocean

Example: Two clients ship product to Rotterdam. There are rail and truck options to multiple ports with various ocean carrier options.

Legend:Truck Rail Ocean

Figure by MIT OCW. MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Transportation Networks

UNITED STATES

ATLANTIC OCEAN

Example: Two clients ship product to Rotterdam. There are rail and truck options to multiple ports with various ocean carrier options.

Legend:Truck Rail Ocean

Physical

Operational

Strategic

Figure by MIT OCW. MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Three Layers of NetworksPhysical Network: The actual path that the product takes from origin to destination. Basis for all costs and distance calculations– typically only found once. Operational Network: The route the shipment takes in terms of decision points. Each arc is a specific mode with costs, distance, etc. Each node is a decision point.

Strategic Network: A series of paths through the network from origin to destination. Each represents a complete option and has end to end cost, distance, and service characteristics.MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

The Physical NetworkGuidewayFree (air, ocean, rivers) Publicly built (roads) Privately built (rails, pipelines)

TerminalsPublicly built (ports, airports) Privately built (trucking terminals, rail yards, private parts of ports and airports)

ControlsPublic (roads, air space, rive

rs) Private (rail, pipelines) The physical network is the primary differentiator between transportation systems in established versus remote locations.MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Operational NetworkFour Primary ComponentsLoading/Unloading Local-Routing (Vehicle Routing) Line-Haul SortingCollection Main Sort

HUB

Distribution

Pick up cycleLocal Sort

Line-haul

LOC LOCLine-haul Main Sort Local Sort

Delivery cycle

HUB

Node& Arc view of network Each Node is a decision pointMIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Strategic NetworkPath view of the Network Used in establishing overall service standards for logistics system Summarizes movement in common financial and performance terms– used for trade-offsAir: 3 days,$??/pair

Shenzhen

All Water Route: 35 days,$0.65/pair

Land Bridge: 28 days,$0.75/pairMIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Transportation Impact on TC D D Q TC (Q)= vD+ A + rv + kσ L + BSO Pr[ SO] 2 Q Q

How does transportation impact our total costs?Cost of transportationValue& Structure

Lead TimeValue& Variability& Schedule

CapacityLimits on Q

Miscellaneous FactorsSpecial Cases

MIT Center for Transportation& Logistics– ESD.260

Transportation Management Fundamental Concepts

Simple Transportation Cost FunctionsPure Variable Cost/ Unit$/shipment