Transportation with common carrier and private fleets: system assignment and shipment frequency optimization
Titel:
Transportation with common carrier and private fleets: system assignment and shipment frequency optimization
Auteur:
Hall, Randolph W. Racer, Michael
Verschenen in:
IIE transactions
Paginering:
Jaargang 27 (1995) nr. 2 pagina's 217-225
Jaar:
1995-04-01
Inhoud:
Many companies in the retailing and manufacturing sectors operate private fleets for their internal and external distribution needs. In most cases, private fleet operators also use common carriers for distribution outside a normal area of coverage, or for distribution to or from locations that do not generate an adequate volume of shipments to justify private carriage. In this paper, an approximate procedure is developed for determining whether a stop should be served by a private carrier on a local pickup and delivery route, or by a common carrier. The cost of using the private carrier declines as the mean space between stops decreases. When more stops are assigned to private carriage, the mean spacing decreases and the average cost of adding another stop declines. The methodology presented in this paper for assigning stops to private and common carriage accounts for this cost interaction through use of a square-root route length approximation. Analytical techniques are presented for systems with (1) fixed shipping cycle for all stops with a variable fleet size, (2) fixed shipping cycle for all stops with a fixed fleet size, and (3) variable shipping cycles with a variable fleet size. In the last case, our solution accounts for both transportation and inventory costs.
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