BL 5 Transportation - Lecture notes 5 PDF

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Business Logistics

Transportation Management

Transportation Management Topic 5

Business Logistics

Transportation Management

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Transportation Management ►  Management

and planning of transportation ►  Transportation modes ►  Selection of transportation mode ►  Distribution and vehicle routing

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Business Logistics

Transportation Management

Transportation Management ►  Objectives

§฀  To be able to identify the basic transportation activity of a company. §฀  To be able to use basic analytics tools and methodologies to plan and manage transportation.

Business Logistics

Transportation Management

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Planning and management of transportation ►  Linkage

between raw material with production

►  Linkage

between final products and clients

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Business Logistics

Transportation Management

Planning and management of transportation ►  Objectives

of the planning and management of transportation: §฀  Provide an high desired level of service to customers §฀  Minimize costs with an acceptable level of investment

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Transportation Management

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Planning and management of transportation ►  Service

§฀  §฀  §฀  §฀  §฀ 

indicators

On time delivery Delivery without damages Urgent delivery Reliability in the delivery Information

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Business Logistics

Transportation Management

Planning and management of transportation ►  Strategic

activities

►  Operational

§฀  Mode selection §฀  Fleet owned or hired §฀  Transportation planning

decisions §฀  Route planning §฀  Allocation of carriers §฀  Load generation (how to load a vehicle)

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Transportation Management

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Planning and management of transportation ►  Transportation

environmental problems PROBLEMS • Congestion • Pollution

and •  High speed train •  Development of combined transportation •  Effective air control system • Airport and seaport well communicated • Amplify highway network • More waterway • Environmental friendly vehicles and with low noyse.

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Business Logistics

Transportation Management

Planning and management of transportation

Business Logistics

Transportation Management

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Transportation Modes ►  Maritime ►  Aviation ►  Canal

and waterways ►  Railway ►  Truck ►  Combined

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Business Logistics

Transportation Management

Transportation Modes modes by sector in Spain

Percentage

►  Transportation

Operators Manufacturer Distributors

Road

Rail

Air

Intermodal

Sources: Barómetro de la Logística en España (2008), Centro Internacional de Investigación en Logística (CIIL), IESE.

Transportation Management

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Business Logistics

Maritme

Transportation Modes ►  Advantages

of on the road transportation §฀  High Flexibility §฀  Door to door delivery §฀  Rapidity §฀  Competitive cost by unit load

►  Inconvenient

of on the road transportation §฀  Pollution §฀  Congestion

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Business Logistics

Transportation Management

Transportation Modes ►  On

the road transportation in Spain

§฀  Increasing competitiveness §฀  Foreign capital §฀  Important differences in the material flow §฀  Atomization

Business Logistics

Transportation Management

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Transportation Modes ►  Advantages

of maritime transportation §฀  Economies of scale §฀  Medium flexibility

►  Inconveniences §฀  Slow service

§฀  Double hadling §฀  Delays

Containers 14

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Business Logistics

Transportation Management

Transportation Modes ►  Maritime

Transportation in Spain

§฀  Standardized containers §฀  Modern equipment of handling §฀  Growth §฀  Reduction of Spanish fleet §฀  Main seaport in Spain: *  Algeciras, Barcelona, Valencia *  Bilbao

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Transportation Management

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Transportation Modes ►  Advantages

of rail transportation §฀  Reduce congestion on the road §฀  Low pollution §฀  For high volume, low cost §฀  High capacity

►  Inconveniences

§฀  Low flexibility §฀  Lack of an integrated European network §฀  Double handling

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Business Logistics

Transportation Management

Transportation Modes ►  Rail

transportation in Spain

§฀  Congestion at major terminals (Barcelona and Madrid) §฀  Priority to passenger transport

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Transportation Management

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Transportation Modes ►  Advantages

of air transportation §฀  Rapidity §฀  International movements §฀  High flexibility §฀  Competitive for products with high value and low volume

►  Inconveniences

§฀  Delay (paperwork and airport congestion) §฀  High cost per volume

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Business Logistics

Transportation Management

Transportation Modes ►  Air

transportation in Spain

§฀  Lack of development of air cargo centers §฀  Main airports: *  Madrid, Barcelona, Palma de Mallorca y Gran Canarias

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Transportation Management

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Transportation Modes ►  Multimodal

vs. combined ►  Using multiple modes of transportation… §฀  Multimodal Transportation *  No breakdown or disintegration of the load on the passage of goods from one transport mode to another.

§฀  Combined Transportation *  In the passage of goods between modes of transport occurs "breaking load“.

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Business Logistics

Transportation Management

Transportation Modes ►  Advantages

of multimodal transport

§฀  Reduces the time of loading / unloading §฀  Reduced insurance premiums §฀  Reduced delivery times §฀  Cheaper transport costs §฀  Reduction controls (sealed container) §฀  Simplification in the documentations

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Transportation Modes ►  Advantages

of intermodal by Industry

Optimization of road network Safety transportation of products Suitable for long distance Personnel reduction Saving Fuel Cost Reduction Saving Energy

Distributors

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Manufacturer

Operators

Source: Barómetro de la Logística en España (2008), Centro Internacional de Investigación en Logística (CIIL), IESE.

© Helena Ramalhinho Lourenço (Barcelona, 2015)

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Business Logistics

Transportation Management

Transportation Modes The multimodal transportation in Spain

ZAL Barcelona ► 

§฀ 

Connection point and joint networks of different modes of transport, and of logistics service convergence

PUERTO SECO •  Terminal located on the mainland railway linking it with a port

http://www.zal.es/

• 

• 

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Puerto Seco de Azuqueca de Henares (Madrid) http:// www.puertoseco.co

Selection of transportation modes Operational Factors Clients Products Company External

Characteristics of transportation mode Road

Rail

Maritime

Air

Choice of transportation mode Level of customer service Trade off Operacions cost 24

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Business Logistics

Transportation Management

Selection of transportation modes ►  The

choice of mode of transport is directly related to the particular needs of the company. ►  Customer service §฀  Fast response §฀  Reliability ►  Cost

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Transportation Management

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Selection of transportation modes ►  Transportation

costs ►  Freight transport by road §฀  Time Costs *  Vehicle Depreciation *  Vehicle Financing *  Personal driving *  Insurance *  Tax costs *  Subsistence

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Business Logistics

Transportation Management

Selection of transportation modes ►  Transportation

Costs ►  Freight transport by road §฀  Kilometric costs *  Fuel *  Tires *  Maintenance *  Repairs

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Transportation Management

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Transportation on the web ►  http://www.transportweb.com

§฀  The Transport Web is here to help you identify information and services available to the Transport World. ►  http://www.internationaltransportforum.org ►  https://ec.europa.eu/transport/home_en ►  http://territori.gencat.cat/ca/inici/

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Business Logistics

Transportation Management

Vehicle Routing ►  Distribution ►  Organization

§฀  §฀  §฀  §฀ 

of local transportation

Assignment to stores Transportation planning Assignment to trucks and transporters Route scheduling

►  Operations

Research techniques can help select among several alternatives.

Vehicle routing

Business Logistics

Transportation Management

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Vehicle Routing ►  Knowing…

§฀  The location of clients §฀  Demand or deliveries §฀  Road network / streets. ►  We

can determine the optimal configuration of the vehicle routing to realize the distribution or the reception of products.

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Business Logistics

Transportation Management

Vehicle Routing ►  Examples

§฀  Retailing Distribution *  Grocery *  Fashion *  Restaurants *  …

§฀  §฀  §฀  §฀  §฀ 

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Transportation Management

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Newspaper distribution Distribution of petrol to petrol stations Collecting messaging Milk pick up E-commerce

Vehicle Routing ►  Decide

the carrier

§฀  Traffic knowledge, routes, etc. ►  Decide

the company

§฀  Customer service

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Business Logistics

Transportation Management

Vehicle Routing ►  Some

classic problems

§฀  A single route without capacity constraints *  Traveling salesman problem

§฀  Several routes with capacity constraints *  Classic routing problem

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Transportation Management

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Vehicle Routing ►  Traveling

Salesman Problem (TSP)

§฀  Input *  Set of cities or customers *  Distance (cost) between each pair of cities

§฀  Determine *  The route with the least total distance (or cost) that begins and ends in the same city and visit all cities.

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Business Logistics

Transportation Management

Vehicle Routing ►  Traveling

salesman problem 12

0

1

8

4 20

8

8

4

18

5

10 6

2

3

Transportation Management

Business Logistics

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Vehicle Routing Distances Cities

Barcelona Bilbao Huelva Madrid Málaga Sevilla Oviedo

Barcelona Bilbao Huelva Madrid Málaga Sevilla Oviedo Valencia

-

620 -

1140 939 -

621 395 632 -

997 939 313 544 -

1046 933 94 538 219 -

902 304 821 451 995 789 -

349 633 791 352 648 697 803

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Business Logistics

Transportation Management

Vehicle Routing ►  Traveling

salesman problem

§฀  Heuristic of the nearest neighbor 0

1

12

8 4

4

20

8

8 18

5

10 6 2

3

Transportation Management

Business Logistics

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Vehicle Routing ►  Heuristic

of the nearest neighbor

0

1

12

8 4

4

20

8

8 18

5

10 6 2

3

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Business Logistics

Transportation Management

Vehicle Routing ►  Heuristic

of the nearest neighbor

0

1

12

8 4

4 20

8

8 18 5 10 6 2

3

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Transportation Management

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Vehicle Routing ►  Heuristic

of the nearest neighbor

0

1

12

8 4

4

20

8

8 18

5

10 6 2

3

40

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Business Logistics

Transportation Management

Vehicle Routing ►  Heuristic

of the nearest neighbor

0

1

12

8 4

4 20

8

8 18 5 10 6 2

3

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Transportation Management

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Vehicle Routing ►  Heuristic

of the nearest neighbor

0

1

12

8 4

4

20

8

8 18

5

10 6 2

3

Total distance = 43

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Business Logistics

Transportation Management

Vehicle Routing ►  Optimal

solution

0

1

12

8 4

4 20

8

8 18 5 10 6 2

3

Total distance = 35

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Transportation Management

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Vehicle Routing ►  Web

in TSP

§฀  http://www.math.uwaterloo.ca/tsp/ §฀  http://www.math.uwaterloo.ca/tsp/games/tspOnePlayer.html

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Business Logistics

Transportation Management

Vehicle Routing ►  Classic

problem of routing

§฀  Input *  Set of clients and their demand *  Vehicles and their capacity. *  Location of the warehouse (depot) *  Distance (cost) between each pair of cities

§฀  Determine *  The shortest routes for each vehicle *  Do not exceed the vehicle capacity

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Vehicle Routing ►  Example

§฀  The owner of a known clothing store in Barcelona, Julia Co, has shops in 20 different shopping centers in Barcelona. §฀  The logistics planner would like to minimize the transportation cost (to minimize distances. §฀  The maximum load of a vehicle is 100 boxes. §฀  Can you help?

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Transportation Management

SHOPPING(CENTER( Warehouse( CC Arenas de Bcn Bulevard Rosa CC Diagonal Mar CC El Triangle Maremagnum

ADDRESS(

DEMAND(

Avinguda(Parc(Logis?c,(2B10,(Barcelona.( Gran(Via(de(les(Corts(Catalanes,(373,(Barcelona.( Passeig(de(Gràcia,(53,(Barcelona.( Avinguda(Diagonal,(3,(Barcelona.( Plaça(de(Catalunya,(4,(Barcelona.( Moll(d'Espanya,(5,(Barcelona.(

Depot( 20( 14( 60( 10( 15(

CC La Maquinista CC Gran Vía 2 CC L’illa Diagonal Pedralbes Centre CC Splau! CC Barnasud CC Glòries

Carrer(Potosí,(2,(Barcelona.( Avinguda(de(la(Granvia(de(l'Hospitalet,(L’hospitalet.( Avinguda(Diagonal,(557,(Barcelona.(

50( 60( 70(

Avinguda(Diagonal,(609,(Barcelona.( Avinguda(del(Baix(Llobregat,(Cornellà.( Carrer(Progrés,(69,(Gavà.( Avinguda(Diagonal,(208,(Barcelona.(

50( 30( 60( 65(

CC L’Ànec Blau CC La Farga La Roca Village

Avinguda(del(Canal(Olímpic,(24,(Castelldefels.( Avinguda(Josep(Tarradellas(i(Joan,(0,(L’hospitalet.( La(Roca(Village,(Sant(Agnès(de(Malanyes.(

CC Parc Vallès CC Heron City Bcn Mataró Parc CC Baricentro

Avinguda(Tèx?l,(Terrassa.( Passeig(Andreu(Nin,(Barcelona.( Carrer(Estrasburgo,(5,(Mataró.( Ctra.(NB150(Km.(6,7,(Barberà(del(Vallès.( Avinguda(de(Francesc(Macià,(46,(Barcelona.(

Paddock-Bulevard

70( 40( 30( 40( 65( 20( 35( 55(

Business Logistics

Transportation Management

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vrp.upf.edu

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Transportation Management

Business Logistics

Transportation Management

vrp.upf.edu

Vehicle Routing - Example ►  Several

vehicles with capacity 80.

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Transportation Management

Vehicle Routing ►  Classic

Routing Problem ►  Savings method (Clarke & Wright) *  Each customer is visited by a vehicle that leaves and returns immediately to the deposit. *  Savings to visit two clients sij=c0i+cj0-cij *  Determine the highest saving sij (not considered yet), if: –  i and j...