On the Optimal Allocation of Three Modes for The Intercontinental Transportation of Seasonal Products

Abstract

The existence of a worldwide trend that the world\u27s manufacturing site is moving toEast Asia is well known. Very large part of the products produced in these districts are to betransported to the U.S.A. and are concentrated to rather small number of ports, including airports.These situations are causing very serious traffic problems. New products are required to betransported swiftly by air. Once the market demands are stable, the products should be sent ratherslowly but in larger amount. Since the airport of China is quite restricted, transportation cost isincreasing and also the time for transportation is increasing. Here, the third method is appearing.This is the so-called Sea-and-Air transportation. Its cost and time in transit takes a mean positionbetween Air and Ocean freight services. However, there have been existing no reasonable strategyhow to allocate these three methods for the transportation. In the previous paper the optimalcondition was considered under the assumptions that products are transported directly after theirproduction. Here, the same problem is considered under the assumption that all products arealready produced and stored in the inventory. Products are transported following the demands fromthe consuming districts. The most efficient transportation for such case is considered with the helpof simulations

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