Modelling Mode Choice in Freight Transportation Based on Deterministic Logistics Cost Model

Author(s):  
Sevil Köfteci
2013 ◽  
Vol 3 (3) ◽  
pp. 28-34
Author(s):  
Jan Hendrik Havenga ◽  
J. van Eeden ◽  
Wessel Pienaar

The Cross-Border Road Transport Agency (CBRTA) in South Africa aims to encourage and facilitate trade between South Africa and its neighbouring countries. The CBRTA sponsored a study by Stellenbosch University (SU) to determine the logistics cost impact of cross-border delays between South Africa and its major neighbouring trading partners, and prioritise opportunities for improvement. SU is the proprietor of both a comprehensive freight demand model and a logistics cost model for South Africa, which enable extractions and extensions of freight flows and related costs for specific purposes. Through the application of these models, the following information is identified and presented in this paper: South Africa’s most important border posts (based on traffic flows); a product profile for imports and exports through these border posts; the modal split (road and rail); the annual logistics costs incurred on the corridors feeding the border posts, as well as the additional costs incurred due to border delays. The research has proved that the streamlining of border-post operations that take a total supply chain view (i.e. of both border operations and those that could be moved from the border) is beneficial.


2017 ◽  
Vol 4 (1) ◽  
pp. 25
Author(s):  
Wahyu Wibowo ◽  
Irwan Chairuddin

The purpose of this study is to obtain information from businessmen about how far multimoda transportation system that is applied during this time can affect the efficiency of existing logistics costs and what constraints that affect the implementation of the multimoda freight transportation system. The role of multimoda transport is growing very fast in recent decades which are in line with the growth in demand for goods consumed by society and production machines. The movement of goods is keep on increasing that requires an efficient transportation and can be executed quickly, so a system is very needed thatis called multimoda. This system is believed to reduce logistics costs, knowing that the Indonesia logistical index is still below compared to other countries in Asean, that is 24% of the GNP. The research found out that the Multimoda Transportation System has a strong relation with the Logistics Cost Efficiency of r = 0.89 and the regression relationships form Y = -0809 + 1:12 X + e, X = MultimodaTransport System and Y = Logistics Efficiency Costs. The influence of Multimoda System on Logistics Costs in the opinion of the respondents is 80%, assuming other factors are not observed


1991 ◽  
Vol 18 (3) ◽  
pp. 515-520 ◽  
Author(s):  
W. M. Abdelwahab ◽  
M. A. Sargious

The application of discrete choice models (e.g., logit, probit) to study modal choice in passenger transportation has had a wide acceptance in the literature. However, little success had been reported on the application of these models to study the demand for freight transportation. This is mainly because in freight transportation a model that merely attempts to explain the choice of mode without taking into consideration other related factors, such as shipment size, is only one part of a complete model. Another type of models known as inventory-based models, which takes these factors into consideration, has been developed and applied with a greater success. However, the data requirement of these inventory models has hampered their applicability, especially in situations with limited data on goods movement. This paper presents a new approach to study the demand for intercity freight transportation. The model proposed in this paper utilizes the strength of discrete choice models (e.g., probit) in explaining the process of mode choice as one part of a complete model. The complete model is presented as a joint discrete/continuous choice model for the choices of mode and shipment size. The model is practical in that it requires the same amount and quality of data that would be required to develop a standard disaggregate mode choice model, and it can be estimated using simple two-stage estimation methods which utilizes standard probit maximum likelihood and ordinary least squares estimation techniques. Key words: disaggregate, freight transportation, maximum likelihood, mode, model, probit, shipment.


Author(s):  
Al Chen ◽  
Karen Nunez

The bulk chemical industry primarily relies upon truck transportation. Truck transportation, although costly, has a high percentage of on-time deliveries. Cheaper alternative transportation modes are less preferred due to a lack of supply chain information. Traditionally, the lack of information about in-transit products leads to higher safety stock and inventory levels, which results in higher costs. Process mapping and activity-based cost analysis are used to identify cost drivers and highlight the areas of opportunity for improving bulk chemical supply chain management. The activity-based cost information was used to develop a logistics cost model specifically tailored to the bulk chemical industry. The activity-based logistics cost model was used to assess potential cost savings from integrating centralized supply chain management software (visibility solutions), into the bulk chemical supply chain. The results of our analysis support integrating visibility solution software into multi-modal transportation to improve bulk chemical supply chain management. Integration of visibility solutions enables suppliers to improve their ability to monitor and control their inventory throughout the supply chain, increase overall asset utilization, and reduce global supply chain costs.


2011 ◽  
Vol 8 (3) ◽  
pp. 622-631 ◽  
Author(s):  
Jan Hendrik Havenga ◽  
Wessel Pienaar ◽  
Zane P. Simpson

This paper makes a case for macroeconomic logistics measurement and presents the results of the 2009 logistics cost model for South Africa. The major portion of logistics costs is attributable to road transport, of which the biggest cost driver is fuel, which, in turn, is determined by volatile oil prices and the exchange rate of the country’s monetary unit. This poses a significant exogenous risk to logistics cost management in South Africa.


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