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Logistics, Inter modal and transport Costs

Rationale of the study

Fierce competition in todays market has forced business enterprises to invest in and focus on supply chains. The growth in telecommunication and transportation technologies has led to further growth of the supply chain. The supply chain, also known as the logistics network, consists of suppliers, manufacturing centers, warehouses, distribution centers and retail outlets, as well as raw materials, work-in-process inventory and finished products that flow between the facilities. The location of factories, warehouses and supply points in general, to serve customers distributed over a network of cities is often influenced by transports costs.If transport cost are uniform and linear with respect to distance, the total transport cost is proportional to the sum of the distances from the supply points to the cities served, each weighted by the volume of shipments. Intermodal transport reflects the combination of at least two modes of transport in a single transport chain, without a change of container for the goods, with most of the route traveled by rail, inland waterways or ocean-going vessel, and with the shortest possible initial and final journeys by road. Operational Research has focused mostly on transport problems of uni-modal transport modes. We argue that intermodal freight transportation research is emerging as a new transportation research application field, that it still is in a pre-paradigmatic phase, and that it needs a different type of model than those applicated to unimodal transport. In this paper a review is given of the operational research models that are currently used in this emerging field and the modeling problems, which need to be addressed.

people looking to ship goods (or move people) are likely to realize that it doesn't always make sense to stick to just one mode of transportation. For example, cargo may be offloaded from a ship onto a truck, which transfers it to a railyard, from which it will be moved across the country by train. Intermodal transportation may be more efficient and cheaper; in some cases, however, it does have pronounced disadvantages in terms of speed and reliability.They are too slow to operate at peak efficiency, intermodal transportation must also reduce the amount of time spent waiting in depots for a new carrier to arrive or for cargo to be unloaded. The lack of reliability, Because of its reliance on more than one mode of transit, intermodal transportation is also subject to lower overall reliability; as the chain of different modes grows, the possibility of any link in the chain breaking down also increases. This is particularly problematic when one of the modes of transport is rail; railroads are more susceptible to delays introduced by bad weather or equipment failure. For this reason, as well as concerns over speed, shippers that require reliable, high-speed transportation are less likely to consider intermodal systems. The other reason is the damage, Whenever cargo has to be shuffled around, shippers risk the possibility of damage as the freight is transferred from one method of transportation to another. Fortunately, this danger can be mitigated, but doing so generally involves overpacking by adding more bracing and protective material than would normally be deemed sufficient. This added weight and expense partially counteracts the advantages intermodal transportation has in terms of energy efficiency and cost.The High infrastructure Costs of Intermodal freight transportation also suffers from comparatively high infrastructure costs. Containerization has lowered the cost and difficulty of transporting goods by standardizing their form; shippers can easily move the same container from a ship to a train to a truck. Handling these containers, however, requires that shippers have the heavy-duty cranes and equipment necessary to manipulate large containers; this infrastructure may not exist in all places, particularly in developing countries. The reasons why we conduct this study is to know the advantages and disadvantages of logistics and how to make a strategies for the safe and fatest delivery of the cargo to the consumer.and the reason of how to improve the delay of the products and the reasons that products are being delayed due to the calamities.

Significance Of The Study

Logistics and intermodal services play important roles in transportation. Logistics refers to a company's program for efficiently delivering goods to the customer. Intermodal pertains to the use of more than one type of transportation to ship the goods. It takes specialized skills, education and experience to work in the various logistics and intermodal transportation careers. Logistics is the one important function in business today. No marketing, manufacturing or project execution can succeed without logistics support. For companies, 10 per cent to 35 per cent of gross sales are logistics cost, depending on business, geography and weight/value ratio. Logistics is comparatively a new term, but not the operation. Logistics has existed since the beginning of civilisation. Raw material and finished products had always to be moved, though on a small scale. Things began changing with the advance in transportation. Population began moving from rural to urban areas and to business centres. No longer did people live near production centres, nor did production take place near residence centres. The geographical distance between the production point and consumption point increased. And logistics gained importance. Another factor has come into play recently. Since the early 1990's, the business scene has changed. The globalization, the free market and the competition has required that the customer gets the right material, at the right time, at the right point and in the right condition at the lowest cost.