BUSINESS LOGISTICS SYSTEMS ANALYSIS

1
BUSINESS LOGISTICS SYSTEMS ANALYSIS
Lecture 11 TRANSPORT FUNDAMENTALS
H. E. METZNER, Ph.D. Department of Engineering
Management University of Missouri-Rolla
2
TRANSPORT MODES

• Rail
• Truck
• Air
• Water
• Pipeline
• Combinations

• Transportation agencies (forwarders)
• Parcel shippers
• Shippers associations
• Brokers

3
(No Transcript)
4
CRUDE OIL PIPELINES
5
PRODUCT PIPELINE
FIGURE 7-7 Oil trunk pipelines in the united
States Source Robert P Leonart Educators 1976
Tour Pipeline Orientation, a speech Courtesy
Amoco Oil Company
6
(No Transcript)
7
(No Transcript)
8
Average Price by Mode

• MODE PRICE (cents/ton-mile)
• Water 0.73
• Pipeline 1.40
• Rail 2.50
• Truck 25.08
• Air 58.75

9
Figures of Merit for modal choice

• Price
• Line haul rate terminal charges
• Transit time
• Origin to destination (door to door)
• Transit time variability
• Measure of performance uncertainty
• Influenced by pick-up delivery
• Loss and Damage

10
Basic modes of transportation

• Rail
• Slow, long hauler of low cost freight.
• Much handling, reclassifying
• Many special services
• Water
• Slower than rail
• Large capacity (40,000T)
• Low loss and damage

11
Basic modes of transportation

• Truck
• Reliable delivery of small shipments
• Door-to-door convenience
• Pipeline
• Crude oil, refined petroleum products, gas
• Most dependable
• No haul-back
• Air
• Speed
• Low loss and damage

12
Intermodal services

• Ten (10) intermodal combinations
• Trailer on Flatcar (TOFC)
• Containers (COFC)
• Agents
• Freight forwarders
• Shippers associations
• Transport brokers
• Small package shippers

13
Business Systems Logistics Analysis
Inventory Strategy
Transport Strategy

• Forecasting
• Storage fundamentals
• Inventory decisions
• Purchasing and supply
• scheduling decisions
• Storage decisions

• Transport fundamentals
• Transport decisions

Customer Service Goals

• The product
• Logistics service
• Information systems

Location Strategy

• Location decisions
• The network planning process

Next Lecture Cost Characterization