Full truckload

Transportation Costs Most waste trucddug is done by commercial and hazardous waste firms. Costs are quoted per load, based on cost for transport (charged per load mile) from point of generation to its destination at a landfill or TSD facility. A strategy wriich permits shipment of full truckloads minimizes the transportation cost per ton. 

The transportation mode used will affect the shipper s options with regard to the selection of the routing of the shipment. Using certified drivers to ship full truckloads of drums, ISO tanks, and tank... 

Every day, merchandise moves into the city from a variety of vendors to a variety of stores. Yet for most stores, full truckloads have not been purchased. Third-party distributors that combine loads from different vendors to different merchants allow economies of scale to develop but nothing like the advantage of a large store that receives and buys full truckloads many times a week. The delivery expense to cost is a significant one for retailers. It cuts into the profit and makes prices for the smaller retailer less competitive. 

The printing industry has annual revenues of over 210 billion. In the book supply chain, book printing is a 5 billion industry. The typical book supply chain operates as follows ([76]) Authors work with publishers to create content, who in turn place orders with printers. Printers print the physical books and ship them to wholesalers in full truckload quantities. These larger loads received at wholesalers undergo break bulk (i.e., they are broken down into smaller shipments) at their fulfillment centers. Bookstores order books from the wholesalers and then manage retail sales. As an example, Ingram Book Company, a wholesaler, processed over 115 million books through eleven fulfillment centers to serve... 

The Home Depot also uses transportation auctions ([34]). The Home Depot was founded in 1978 in Atlanta, GA. Home Depot is the worlds largest home improvement retailer. The 1,000 stores are supplied by thirty-seven distribution centers in forty-five states. The supply chain includes over 7,000 suppliers who provide over 40,000 SKUs to stores and DCs across locations. Over 90% of the products move on trucks. In 1999, the company made 7.1 milUon less-than-truckload shipments and 219,000 full truckload shipments. These were expected to change to 4.7 million less-than-truckload and 877,000 full truckload shipments in 2003. 

Figure 2.2 shows seven possible solutions for the problem. The routes examined included direct shipments from component plants to assembly plants, shipments through the warehouse, peddling (whereby trucks, originating from component plants, would make deliveries across various assembly plants), and combinations of such strategies. For each route, the shipment size could be full truckloads or the optimal shipment size. Figure 2.2 also shows the composition of transport and inventory costs in each of the seven possible logistics systems. 

Products are shipped in full truckloads directly between plants Full truckloads of component 1 are shipped from Santa Fe to the Boston plant and from Portland to the Jersey City plant. Similarly, full truckloads are shipped from the Portland plant to the Boston plant and from the Portland plant to the Jersey City plant (Figure 2.10). 

Cycle Stock Costs Given the full truckload shipments, the size of the deliveries of each component received by each assembly plant is 3,000 units. In the absence of demand uncertainty at each plant, the next truck delivery would be scheduled when the components in this delivery are consumed. This means that the inventory level cycles between 3,000 and 0 units. The average inventory is thus the average height of a right triangle whose height is 3,000 units 3,000... 

We now focus on the average transport cost between every pair of locations in the supply chain. Shipment sizes refer to full truckloads and routes are direct from component plant to assembly plant. Thus the corresponding transport cost obtained is the minimum possible value. 

Suppose Optima were to replace full truckloads by optimal shipment sizes. How would the optimal shipment sizes be determined Given the symbolic description earlier, consider the expression for the total logistics cost for a component from its component plant to the assembly plant. 

Note that the above computation suggests that it is optimal to ship at less-than-full truckload, thereby reducing truck capacity utilization. 

Note that since all of the optimal shipment sizes are below the truck capacity, it is optimal to ship these quantities. Recall, however, that truck ing costs will still be assessed at full truckload levels. 

Optima is considering the option of establishing a consolidation warehouse at Chicago. In the new system, full truckloads of components 1 and 2 would be shipped to Chicago from Portland and Santa Fe. These trucks would have a capacity of 3,000 units and would dehver to Chicago once every ten days. 

Let us solve the constrained optimization problem posed in expressions (4.7 through 4.10) earlier, using the parameters stated in Example 4.2. The Excel set-up for this is shown in Figure 4.1, and we use Excel Solver to find the optimal solution. It turns out that our solution validates the decision from Example 4.2 to ship in full truckload quantities, as the optimal solution to the problem is Q = 2973 and R = 150. 

Option 1 F.O.B. destination, freight prepaid terms, provided that the supplier can use its preferred truckload (TL) carrier to make full truckload shipments of 3200 units, on whatever schedule you require—i.e., shipping any day of your 365-day operating year. The order fulfillment lead time is 3 days, 1 day of which covers transit time from the supplier s facility in Memphis, TN. The TL carrier charges the supplier 2.25/mi, or 882 for the Memphis-to-Atlanta shipment. 

Average shipment-size High (Full-truckload) High (Full-truck load) Low (Less-than truck load)... 

Walmart and other retailers, such as Seven-Eleven Japan, have facilitated aggregation across multiple supply and delivery points without storing intermediate inventories through the use of cross-docking. Each supplier sends full truckloads to the DC, containing an aggregate delivery destined for multiple retail stores. At the DC, each inbound truck is unloaded, product is cross-docked, and outbound trucks are loaded. Each outbound truck now contains product aggregated from several suppliers destined for one retail store. 

What is the annual cost of MoonChem s strategy of sending full truckloads to each customer in the Peoria region to replenish consignment inventory ... 

We first analyze the direct shipping network and assume that full truckloads will be shipped from suppliers to retail stores. In this case, we have the following ... 

Suppliers will often offer volume or quantity discounts to buyers. These discounts provide cost reductions to the buyer but are a way to reduce cost for the supplier as well. Suppliers cost reductions are seen in the form of reduced production cost (fewer setups and longer production runs) and in distribution where full truckloads can be used instead of multiple less-than-fuU truckloads. The buyer, of course, should decide whether or not to take the volume discount. Does the buyer need the additional units and will the quantity discount reduce or increase cost over the long term Using the following example, answers to these questions can be determined. 

---