3HP: Transportation Management

Question 1

What is transportation?

Answer 1

The movement from one location to another

Question 2

What parties are included in transportation?

Answer 2

1. Shipper
2. Carrier
3. Owners and operators of infrastructure
4. Regulatory bodies (controlling transports (like border control))

Question 3

What are the 4 main transportation modes?

Answer 3

1. Road: trucks
2. Rail: train
3. Water: boat
4. Air: plane

Question 4

What are the + and - for road transportation?

Answer 4

+: Cheap, Ffexible, extensive road and motorway network
Door to door shipment, shorter delivery time
-: Limited to continental transport, urban congestion

Question 5

What is truckload (TL)?

Answer 5

When the whole space in a truck is utilized to provide revenue and minimizing trucks idle and empty travel time

Question 6

What is Less Than Truck Load (LTL)?

Answer 6

Smaller shipments with not fully utilized truck space

Question 7

What are the + and - for - for rail transportation?

Answer 7

+ good for large, heavy, high density, low-value products over long distances

-Poor on time performance, risk of delays

Question 8

What are the + and - for - for water transportation?

Answer 8

+ Ideal for carrying large loads at low cost (CHEAP!!)

• Operational issues: delays at port, limitation to certain areas

Question 9

What are the + and - for - for air transportation?

Answer 9

+ Fast!! Ideal for small, high value items or time-sensitive long distance shipments

• Costly, hard with saturation of aircraft capacity

Question 10

What is intermodal transport?

Answer 10

Using more than one mode of transportation to move a shipment to its destination
- Issues: exchange

Question 11

What are the 6 different options for transportation network? also give + and -

Answer 11

1. Direct shipping: supplier–>Buyer
   + No intermediate warehouse, simple coordination
   - High inventories (tradeoff between inventory and transportation costs)
2. Direct shipping with milk runs: A single supplier delivers to multiple retailers or multiple suppliers delivers to single buyer location
   + Lower transportation costs
   - Increased coordination complexity
3. All shipments via central DC with inventory storage: Supplier –> DC–> buyer location
   + Lower inbound transportation
   - Increased inventory cost
4. All shipments via DC + cross-dock: Supplier send their shipments to an intermediate transit point where they are aggregated and sent directly to buyer location
   + Low inventory requirements
   - Coordination complexity
5. Shipping via DC using milk runs: small lot sizes are delivered by one truck to each buyer location one for one
   + Lower outbound transportation cost for small lots
   - Further increase in coordination complexity
6. Tailored network: combo previous options that reduces costs and improves responsiveness of supply chain

Question 12

What is temporal aggregation?

Answer 12

Reduction of responsiveness and transportation cost

Question 13

What is temporal consolidation?

Answer 13

Improvement of transportation performance ( more stable shipments)

Question 14

What type of transportation is optimal for large customers?

Answer 14

TL carrier: big batches!

Question 15

What type of transportation is optimal for smaller customers?

Answer 15

LTL carrier or milk runs