On the Impact of Transportation Costs on Trade in a Multilateral World

2005 ◽  
Vol 71 (3) ◽  
pp. 592-606
Author(s):  
Peter Egger
2019 ◽  
Vol 31 (3) ◽  
pp. 467-490 ◽  
Author(s):  
Asama Alglawe ◽  
Andrea Schiffauerova ◽  
Onur Kuzgunkaya ◽  
Itad Shiboub

Purpose The purpose of this paper is to explore the impact of the cost of quality (COQ) expenditure allocations on a capacitated supply chain (SC) network. Design/methodology/approach This paper proposes a non-linear optimization model which integrates the opportunity cost (OC) (i.e. customer satisfaction cost), into the COQ with consideration of the QL in the supply chain network design decisions. In addition, it examines the effect of considering an investment at each SC echelon to ensure the best overall QL. A numerical example is presented to illustrate the behavior of the model. Findings The results show how the QL, COQ and facility location decisions change when incorporating the OC, investments and transportation costs into the SC model. Originality/value The novelty of this paper is that it considers the effect of OC, investment at each echelon and transportation costs on SC design by minimizing the overall spending on the COQ. These issues have not been explored, and for that reason, this paper contributes to the understanding of the critical factors that optimizes the SC COQ.


2019 ◽  
Vol 116 (13) ◽  
pp. 5943-5948 ◽  
Author(s):  
Dimitris Bertsimas ◽  
Arthur Delarue ◽  
Sebastien Martin

Maintaining a fleet of buses to transport students to school is a major expense for school districts. To reduce costs by reusing buses between schools, many districts spread start times across the morning. However, assigning each school a time involves estimating the impact on transportation costs and reconciling additional competing objectives. Facing this intricate optimization problem, school districts must resort to ad hoc approaches, which can be expensive, inequitable, and even detrimental to student health. For example, there is medical evidence that early high school starts are impacting the development of an entire generation of students and constitute a major public health crisis. We present an optimization model for the school time selection problem (STSP), which relies on a school bus routing algorithm that we call biobjective routing decomposition (BiRD). BiRD leverages a natural decomposition of the routing problem, computing and combining subproblem solutions via mixed integer optimization. It significantly outperforms state-of-the-art routing methods, and its implementation in Boston has led to $5 million in yearly savings, maintaining service quality for students despite a 50-bus fleet reduction. Using BiRD, we construct a tractable proxy to transportation costs, allowing the formulation of the STSP as a multiobjective generalized quadratic assignment problem. Local search methods provide high-quality solutions, allowing school districts to explore tradeoffs between competing priorities and choose times that best fulfill community needs. In December 2017, the development of this method led the Boston School Committee to unanimously approve the first school start time reform in 30 years.


2015 ◽  
Vol 15 (2) ◽  
pp. 541-546 ◽  
Author(s):  
D. A. DuBay ◽  
P. A. MacLennan ◽  
R. D. Reed ◽  
M. Fouad ◽  
M. Martin ◽  
...  

Author(s):  
Miguel A. Carriquiry ◽  
Bruce A. Babcock

Hotelling's classic model of spatial competition is adapted to estimate the impacts on grain price of the closure of one of three grain buyers on the Mississippi River in the vicinity of Scott County, Iowa. The customers of the buyer who is closing (River Gulf Grain Company) in Davenport, Iowa, are assumed to deliver their grain to a buyer in either Buffalo, Iowa, to the south or to a buyer in Clinton, Iowa, to the north. Calibration of Hotelling's framework to this situation leads to an estimated decline in grain bids of 1.5¢ per bushel for the buyer located in Clinton and by 2.5¢ per bushel for the buyer located in Buffalo. These estimates are based on an incremental transportation cost of 0.15¢ per mile between the seller's farm and the buyer. This price decline would reduce gross receipts of the farmers who currently deliver to Davenport by approximately $264,000 per year. The effect of lower price bids on gross receipts of all area farmers would be approximately $750,000 per year. Transportation costs would increase by an estimated $75,000 for those farmers who would have to haul their grain farther because of the closure.


1984 ◽  
Vol 11 (1) ◽  
pp. 19-30 ◽  
Author(s):  
Linda H. Kistler ◽  
Clairmont P. Carter ◽  
Brackston Hinchey

This paper describes selected accounting records of the Tudor Ice Company which were devised to manage and control the far-flung business activities of Frederic Tudor, a 19th century entrepreneur who has been called America's first monopolist. Tudor's business genius lay in developing methods of harvesting, transporting, storing, and marketing commercial quantities of ice taken from New England ponds and shipped to tropical ports around the world. Frederic Tudor employed relatively sophisticated accounting techniques to analyze and control transportation costs and the costs of product shrinkage. He also routinely analyzed and translated foreign currency transactions for his geographically dispersed operations and evaluated the impact of competition on his operations.


2021 ◽  
Author(s):  
Sharov Maksim Igorevich

The study the housing cost dependence on the transport accessibility of the territory of the city will improve the efficiency of the route network and will lead to a reduction in overall transportation costs. The research algorithm consisted of the following stages: data on transport accessibility were systematized; calculation of time costs assessed transport accessibility by city zones; the dependence of the cost per square meter on the time cost of movement is obtained. When assessing the impact of transport accessibility on the housing cost it is important to pay attention to the remoteness from the central part of the city, the proximity of highways, the system of access roads; the proximity of public transport stops with a large number of routes connecting different zones.


2020 ◽  
Vol 19 (S1) ◽  
pp. s88-s97
Author(s):  
Habtamu Fuje

AbstractDespite being at the forefront of the global policy agenda, fuel subsidy reform is understudied and its impact on trade is not particularly well understood. This type of reform could have a huge impact on market performance by increasing transportation costs. I present a case study from Ethiopia, which removed its fuel subsidies and increased the price of diesel price by 39% overnight on 4 October 2008. What is the impact of such an increase in diesel price on transportation costs and hence grain prices in developing countries such as Ethiopia? I use spatial difference-in-difference (sDID) on distance from major markets to assess the effects of removing the fuel subsidy on grain price dispersion. The sDID leverages distance from the national capital to investigate the impact of fuel subsidy reform on markets located at different distances from consumer centers. The results indicate that remote markets experienced high price dispersion compared to markets near the capital.


Sign in / Sign up

Export Citation Format

Share Document