Transportation network, design

Planned set of transport networks designed to serve entire Europe, see http //tentea.ec.europa.eu/. 

There may be different transportation network designs within a supply chain such. 

Transportation network design decisions are affected by the cost of opening new facilities, holding inventory costs, inbound, outbound logistic costs among others. 

Current, J. Marsh, M. 1993. Multi objective transportation network design and routing problems taxonomy and annotation. European Journal of Operational Research, 65 1-6. 

Park, M. Kim, S. Park, C. Chon, K. 2007. Transportation network design considering travel time reliability. In Intelligent Transportation Systems Conference. ITSC. IEEE 496-502. 

Identify the relative strengths and weaknesses of various transportation network design options. 

In order to incorporate tax regimes into supply network design, the respective model has to maximize after-tax cash flows and be able to allocate transportation costs and determine optimal transfer prices. Determining optimal transfer prices is the most complex aspect because tax authorities have adopted strict rules regulating transfer pricing in order to... 

Based on the average transport duration, inventory carrying costs for pipeline inventory are calculated (3.18). Further safety stocks are considered to be independent of the chosen network design and hence not considered. 

An interesting level of complexity is added if the network design model is required to provide precise data on currency exposure. As shown in Figure 42 various currencies can be involved in a simple transport of a product from a site to another site or a market. 

Jacob F (2005) Quantitative Optimierung dynamischer Produktionsnetz-werke. Dissertation, Technical University Darmstadt, Darmstadt Jayaraman V (1998) Transportation, facility location and inventory issues in distribution network design. International Journal of Operations Production Management 18 471-494... 

In this chapter, we will explore the factors that impact the transportation of goods and the different tools and techniques that the industrial engineer can apply in the development of effective transportation networks and systems to reduce or minimize costs, improve cycle time, and reduce service failures. A similar but inherently different aspect of transportation is that of transporting people. Although this chapter is concerned with the transportation of goods, the industrial engineer also plays an important role in designing these types of systems. 

The industrial engineer can apply a variety of mathematical and engineering tools and techniques in the planning and management of effective transportation networks and systems in order to reduce or minimize costs, improve cycle time, reduce service failures, and so on. The industrial engineer plays a critical role in the development of efficient delivery routes, schedules, and plans and also helps in the design and implementation of transportation information systems. 

The use of information from all of these system components will enhance the planner s ability in designing efficient transportation networks and delivery routes. In addition, as this information is communicated to the drivers, they will also have the capability of making better decisions that wUl enhance customer satisfaction and reduce overall costs. 

Depending on the type of analysis, a DSS may require collecting information from various parts of the company. For example, supply chain network design requires both static and dynamic information from different parts of the company. The static data include plant production rates, locations of the plants, warehouses, and customers as well as warehousing costs and transportation costs, and the dynamic data involve forecasts, orders, and current deliveries. This type of information will not usually be found in one database or one department in a company. 

For instance, consider the logistics network design model discussed previously. A DSS is often used to assist in optimizing the number of warehouses required as well as their size and customer allocation to each warehouse. The DSS uses information about the distribution system to calculate the various costs related to the site selection and customer allocation. The data required for this problem involve the manufacturers, warehouses, and customers and the transportation between them. Since this is a long-term planning tool, yearly demand data and costs are typically used, but sometimes the user may need to determine how to account for seasonality. In addition, in order for this kind of DSS to be utilized successfully, the user needs to break the products into product families... 

Crainic, T. Service network design in freight transportation. European Journal of Operational Research, 122(2) 272-288, 2000. 

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