Transport mode and network architecture : carbon footprint as a new decision metric

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2008.Includes bibliographical references (leaves 132-133).This thesis examines the tradeoffs between carbon footprint, cost, time and risk across three case studies of United States' perishable or consumer packaged goods firms and their transportation partners. Building upon previous research, and utilizing an Institute of Management and Administration (IOMA) and MIT Center for Transportation and Logistics (CTL) survey of supply chain professionals, the goal of this thesis is to better understand the decision process and motivations of our case study companies with regard to carbon footprint and implications for transport mode and network architecture, and the tradeoffs involved in making these decisions. We examine: (1) An expedited refrigerated rail service providing coast-to-coast shipment of produce for a major retailer, in lieu of its prior trucking arrangement; (2) A dairy producer which with the help of its trucking partner switched from less-than-truckload (LTL) to full truckload (FTL) and currently explore the possibility to re-organize its distribution network; and (3) A bottled water firm which created an additional container shipping route to reduce the volume of water it ships via truck. Comparisons and contrasts are made between case study firms. Findings from these case studies are used to make forward-looking recommendations for companies interested in altering transport mode and/or network architecture as a means of reducing the carbon footprint of their operations.by Nelly Andrieu and Lee Weiss.M.Eng.in Logistic

Truckload freight transportation utilizing relay points to improve the driving job

We propose a relay point based approach on a highway transportation network to obtain robust solutions for the truck driver turnover and driver retention problem. We exploit the characteristics of the driver routing problem and truckload freight moved over a highway transportation network and introduce a new approach to route drivers over shorter distances and to move trailers continuously while holistically considering important performance measures as related to the truck driver, transportation carrier, and customer. The amount of time drivers spend driving and the time spent at home are exploited to determine a balance between driver home time and driver pay. A mathematical program is introduced to determine where relay points should be more optimally located to exchange equipment, perform equipment maintenance, access resting facilities, etc. while considering important costs related to transporting truckload freight. The intention is to propose a method to improve the truckload driving job but not at the expense of the transportation carrier and customer. We discuss some of the desirable characteristics of this approach and also investigate the sensitivity of the solutions via a numerical experiment

Utilizing Relay Points to Improve the Truckload Driving Job

We propose a relay point based approach on a highway transportation network to obtain robust solutions for the truck driver turnover and driver retention problem. We exploit the characteristics of the driver routing problem and truckload freight moved over a highway transportation network and introduce a new approach to route drivers over shorter distances and to move trailers continuously while considering important performance measures as related to the truck driver, transportation carrier, and customer. The amount of time drivers spend driving and the time spent at home are exploited to determine a balance between driver home time and driver pay. A mixed integer quadratic program is introduced to determine where relay points should be more optimally located to exchange equipment, perform equipment maintenance, access resting facilities, etc. while considering important costs related to transporting truckload freight. The intention is to propose a method to improve the truckload driving job but not at the expense of the transportation carrier and customer. We discuss some of the desirable characteristics of this approach and also investigate the solutions via a numerical case study

Transportation in low density markets: a role for public policy?

Many jurisdictions continue to regulate transportation services to small communities. These low density transport markets are subject to utilization economies that are lost when the market is fragmented among numerous competitors. This paper uses a simulation model that replicates the actual dispatching procedures used to distribute automobiles in western Canada. Using the actual demand for automobiles, the service levels and produc tivity of truck service in low density markets are estimated for various competitive scenarios and compared to the actual service and productivity levels achieved. Market performance results are modeled under monopoly and under competitive conditions and explicitly show the tradeoff between service and productivity (cost). Market fragmentation is seen to result in significant productivity losses with service held constant, or service de clines with productivity held constant. Competitors with the largest market shares have the greatest opportunities to produce the highest levels of service at the lowest cost. The results are consistent with empirical studies of other Canadian truck markets. Implications for public policy regarding transportation in low density markets are developed

Under-utilisation of road freight vehicle capacity: A case for eco-efficiency through collaboration

The road haulage sector experiences a considerable amount of inefficiency, characterised by sub-optimal utilisation of an individual vehicle’s cubic load fill and weight hauling capacity. This study firstly aims to understand why – despite its evident economic and environmental cost – this phenomenon has existed over the years. Next, an overview of initiatives and opportunities for improving freight vehicle capacity utilisation will be given. This paper by no means attempts to suggest that part-loaded or empty trucking can be fully eliminated. What is argued however is that there is theoretical scope for reducing the socio-environmental externalities of these activities while sustaining – if not increasing – the benefits that road haulage offers to the economy. Alongside direct mitigation of energy efficiency (by vehicle technology and/or modal shifts), maximizing existing vehicle capacity utilization must also form an integral part of efforts to green modern road freight logistics.It is suggested that horizontal collaboration and multi-actor co-loading of freight vehicles holds the greatest potential for improving vehicle fill rates. This requires little capital investment and would mean that the same degree of utility is delivered with fewer individual vehicles on the road. However, it is also argued that a collaborative road freight model may come in conflict with modern customer demands and production patterns, which typically involve rapid just-in-time deliveries of ever smaller consignments. Subsequently the widespread outsourcing of road freight operations to external third-party operators has not resulted in pronounced gains in vehicle capacity utilisation. It appears that a transport operator has very limited ability to better consolidate goods within its vehicles, unless its contractors offer an operational environment where this is possible. This paper suggests that a platform be established that will enable transport purchasers (contractors) to identify synergies in their logistical flows. This should help to move away from one-vehicle-to-one-customer arrangements, and develop an approach where a single moving vehicle’s available capacity is viewed as a service that is available for the benefit of several actors at the same time

The relationship between measures of operations efficiency and financial success of truckload motor carriers: An empirical analysis

This research paper examines the statistical relationship between clay to day performance and effi­ ciency measures and financial performance in the motor carrier industry. Key findings are that carriers with more miles per tractor per year, a larger average length of haul, more revenue per mile, and more revenue per tractor per week tend to perform better financially as measured in three separate models by operating ratio, return on assets, or return on equity. Unexpectedly, for the eight publicly traded carriers included in the analysis, there was a negative relationship between empty mile percentage and financial performance, indicating that carriers with a higher empty mile percentage have better financial perfor­ mance. Possible explanations for these counterintuitive results could be due to a focus on better cus­ tomer service or driver satisfaction causing slight increases in empty miles. Therefore the increased costs resulting from empty miles could be offset by higher revenue or decreased costs in other aspects of the operation. These results suggest that managers should focus not on minimizing empty miles but rather on keeping them within an acceptable range