Friday: Transportation management

Question 1

Name the 4 parties within transportation

Answer 1

1. Shipper: requires the movement of the product from A to B
2. Carrier: the party that moves
3. Owners and operators of infrastructure
4. Regulatory bodies: ex. organizations regulating the transportation, like transportstyrelsen

Question 2

Name the components of transportations

Answer 2

1. Design of the transportation network
2. Choice of transportation models
3. Transportation-related metrics: measurable values like weight and costs

Question 3

What kind of delivery is road suitable for?

Answer 3

• Flexible
• Door-to-door shpmnt
• Shorter delivery time

Question 4

What is the difference between truck-load and less-than-truckload

Answer 4

Truckload: Using the entire truck for one shipment
- minimizing empty travel

less-than-truckload: multiple small shipments in the same truck
- Flexible in local distribution

Question 5

What kind of delivery is rail suitable for?

Answer 5

• Move large, heavy, high density, low value products over long distances
• Not time sensitive

Question 6

What are the issues with rail transportation?

Answer 6

Not time sensitive

Track and terminal delays

Vehicle and staff scheduling might complicate

Question 7

What kind of delivery is water suitable for?

Answer 7

Carring large loads at low cost
Cheap

Question 8

Issues with water transportation?

Answer 8

Low travel speed, limitation to certain areas, delays at ports, security problems,

goods can be affected due to temperature conditions

Question 9

What kind of delivery is air transportation suitable for?

Answer 9

• Small, high-value items
• Time sensitive
• emergency shipments that must travel a long distance

Question 10

Example of emergency goods for air transportation?

Answer 10

Human organs, fish and fruit, spareparts

Question 11

Issues with air transportation?

Answer 11

Saturation of the aircrafts capacity, good weight balance among items, preparation of loading units, EXPENSIVE

Question 12

Intermodal transportation

Answer 12

Usage of more than one transportation method

No load breakage, dvs using the same container just moving it

Question 13

Difference between containers and trailers

Answer 13

Trailers has wheels
Containers dont

Question 14

What is direct shipping?

Answer 14

No intermediat warehouse. From each supplier to each buyer

+ Short transportation time
-high inventories

Question 15

Describe direct shipping with milk runs?

Answer 15

Direct shipping but with a route with mutiple stops. Not only one customer

Supplier delivers directly to multiple buyers OR picks up deliveries from many suppliers destined to one buyer location

• Increased coordination complexity

Question 16

All shipments via central DC

Answer 16

Shipped from suppliers to a central distribution centre, then shipped to buyer location

ex. like Martin and Cervera

+ Controlled transportation costs
+ Big distributor decreases the costs per unit

Question 17

Describe shipment via intermittent transit point with cross-docking

Answer 17

Suppliers sending their shipments to a transit point, where items are cross-docked and sent to buyers. No storing at the transit point

Question 18

How does oundbound vs inbound look like considering shipment via intermittent transit point with cross-docking

Answer 18

• Inbound: contains products from suppliers from several buyer locations
• Outbound: contains products to one several buyer from multiple suppliers

Question 19

Shipping via DC using milk runs

Also name one negative aspect

Answer 19

All suppliers goes to one distributor, that then delivers to each buyer during the same session

• Scheduling, coordiation problems

Question 20

Taylored network

Answer 20

To taylor the transportation network depending on company type. There can be several transportation options within the company depending on the product

Question 21

Why is a tailored network important?

Answer 21

Minimizes the transportation and inventory costs

Question 22

What can be the trade-off of picking a cheaper transportation alternative?

Answer 22

Longer lead times and larger minimum shipment quantities

Question 23

What can be the trade-off of big inventories?

Answer 23

Reduced safety, increasing transportation costs

Question 24

Describe temporal aggregation and what that can imply?

Answer 24

TIME-FOCUSED
Waiting for orders under a certain time span and then sending them out together

• Implies reduction of responsiveness and transportation cost

-

Question 25

Describe temporal consolidation and what that can imply?

Answer 25

EFFICIENCY-FOCUSED
To combine several items from different suppliers before sending them out to enhance efficiency

Question 26

Tailored transportation

Answer 26

Using different transportation networks based on customer and product. Cant meet all the customer requirements with just one method

Question 27

What is a TL carrier and when is it suitable?

Answer 27

Large customers

Question 28

What is a LTL carrier and when is it suitable?

Answer 28

Smaller customers