Transport and Distribution Silvio Pereira Dias Montes silvio.montes @ 21 - 7820.

1041 1 History of Transportation Transportation in the general sense is the action or effect of taking people or goods from one place to another. The transport system is vital to the internal a nd external trade, the fixing of the costs of goods and services, the compositio n of prices, the adjustment of markets, land use and urbanization. The most important landmarks in the economic operation of the various modes of t ransportation are: • Invention Machine Steam (1807) • Top of Rail Transport (183 0) • Beginning of pipeline transport (1865) • Early commercial use of the car ( 1917); • Start of Commercial Aviation (1926). 2 • Invention of the Wheel • Invention of the Airplane • Construction of the Pyram ids (Joseph in Egypt?) • Wars - - - - 2nd. Grande Malvinas War Desert Storm Desert Storm 1 2 3 Transport in Brazil Until the 1950s, Brazil's economy was based on export of primary products and th us the transport system was limited to river and rail transport. With the accele ration of the industrial process in the second half of the twentieth century, po licy has concentrated resources in the road, to the detriment of the railroads, especially in the area of heavy industry and mining. As a result, the road secto r, the most expensive after the air, moved at the end of the century more than s ixty percent of the loads. 4 Transport in Brazil Origins The aim of creating a transport network linking the whole country was bo rn with developmental democracies, especially Getulio Vargas and Juscelino Kubit schek. At that time, the symbol of modernity and progress in terms of transporta tion was the automobile. This caused special attention to the aforementioned rul ers in road construction. Since then, Brazil has its roads based on road transpo rt. 5 Transport in Brazil Road transport • The first Brazilian highways date from the nineteenth century, but the expansion of the highway occurred in the Vargas government, with the cre ation of the National Department of Roads (DNER) in 1937. In 1973 went into effe ct the National Transportation Plan, which changed and defined the federal highw ay system. The economic difficulties of the country from the late 1970 caused a progressive deterioration of the road network. The construction of new roads was virtually paralyzed or just kept in a particular sector and very slow pace and maintenance ceased to meet the basic requirements. Transportation in Curitiba. T ubular bus stops. (SEE FIGURE) This is the main means of transportation in Brazi l both in terms of cargo transportation as people, although not the best for all purposes due to its cost and environmental pollution. • • •

6 In Rio de Janeiro ... 7 Transport in Brazil Rail • First national initiatives for the construction of railways date back to 1828, when the Imperial Government authorized by Charter Law to construct and operate roads in general. The purpose was to link the various regions of the country • It is important to note that until the arrival of railroads in Brazil, the land transport of goods was processed on the backs of donkeys on wagon trails. • It s hould be emphasized that in Sao Paulo, the railroads were natural result of agri cultural exports. • The highways have undergone a process of privatization of go vernment because of the difficulty in keeping the Brazilian railroads and operat e them properly. • Among the railroads mentioned, it is noted the deployment of Paranaguá - Curitiba, which has become a hallmark of excellence in railway engin eering in Brazil, considered at that time by many European experts as unworkable . The construction lasted less than five years, despite the difficulties faced i n its 110 km long. (SEE FIGURE) 8 Density of Railway Infrastructure: Brazil vs. U.S. (Source: CNT / Coppead, 2002) 9 10 Transport in Brazil Water transport • The waterways, always remembered an alternative view of the co nditions inside the national river network, little developed. The IWT was never well used to carry loads. In 1994, the mesh waterway participated with only 1% o f cargo transportation. Among the factors of greatest impact on shipping in the twentieth century include: the replacement of coal by oil as fuel. Lack of open channels and interconnection with other modes. The coastline is 9198 km and has a large river network and have not adequately explored the shipping.€The modal w aterway is crucial to promote and integrate the country internally and externall y. After all, there are eight bowls with 48,000 kilometers of navigable rivers, meeting at least 16 waterways and 20 river ports. Port of Paranaguá, second larg est in the country. Large soybean exports. (SEE FIGURE) Maritime transport is of great importance in the export of food, minerals and timber for its high volume of transport. • • • • • • 11 Transport in Brazil • The air transport aviation began in Brazil with a flight of Edmond Plauchut, 2 2 October 1911. The airman, who had mechanical Santos Dumont in Paris, took off from the Praca Maua, flew over Central Avenue and crashed into the sea from a he ight of 80 meters, to reach the Governor's Island. It was then very great enthus iasm for aviation. The extension of the country and the scarcity of other means

of transport have made commercial aviation had an extraordinary expansion in Bra zil. In 1960, the country had the largest sales network in the world in traffic volume after the United States. Began the Brazilian commercial aviation in 1927. The crisis and the federal government to stimulate mergers have reduced that nu mber to just four large commercial enterprises. Air transport is important becau se Brazil is a large country, there are flights that can last more than four hou rs when they travel to distant cities. • • • • 12 Animal World The Program of insects • Siemens Corporate Technology has designed a program tha t mimics the behavior of ants and wasps. The program has been tested and proved that the punctuality of the transport of goods and services almost doubled. • Wh en an insect is not endowed with intelligence, a colony of insects as a whole ha s a fantastic ability to perform extremely complex tasks, such as when it is nec essary to find the shortest path to a food source. 13 Panorama of Transport in Brazil • • • Importance of Transport for socioeconomic development in Brazil Transporta tion System Development of Transport in Brazil • • • • • Maritime Transport Road Transport Railway Transport Air Transport pipeline 14 Globalization of markets has imposed to all players, that look fit the internati onal standards of efficiency and productivity, because otherwise, they will be b arred from the development process. 15 The Brazilian Scenario Transport in Brazil always seen as a work of engineering. The federal gove rnment failed to fulfill its role of provider and maintainer of the basic infrastructure for transport and movement of goods and p eople, domestically, and internationally. The "divestment" is generating a growing increase logistics costs in the country in 2006, is now about 12.8% of Gross Domestic P roduct (GDP). (Source COPEAD / UFRJ). developed countries in those values revolve around 7-8% of their GDP's. 16 The fall in public investment government investment in infrastructure (Union and federal state): 1995-1998 1999-2002 2.31% 1.88% GDP GDP Considering only the investments of the Union Infrastructure: End of the 80 2% of GDP the 90 4 0.73% of GDP 0.97% of GDP from 2000 to 200

(Source: CNI) 17 Investment in Transport Sector For the Union: • 80s 0.7% of GDP • the 90 0.2% of GDP • Period 2000-04 ce: CNI)

0.18% of GDP (Sour

Results: high distribution costs and loss of competitiveness. inhibition to the neces sary revision of the transportation matrix commitment of maintaining the exist ing highway system - 60% of domestic cargo is transported by road 18 Results: (cont.): Inefficiency in the transport of cargo and other types of journeys should be made through the modal rail or waterway. The burden on national highways contribute to their general poor state of conser vation - 80% of federal roads under state management are in poor condition, poor or very poor. 19 Disability in Management and Structure Transport The current model of state intervention is inappropriate. Is there a need fo r a new organization-equipped to undertake studies, planning and monitoring: transport logistics, intermod ality, the improved management of public resources, and guidelines for carry ing out private investment. Is there an overlap of functions between different public sector bodies; 20 Disability in Management and Structure Transport The performance of the National Integration Policy Transportation is not effected; There is little integration between the two regulatory agencies; iency of the Department of National Infrastructure for Transport - DNIT and general public port; 21st Disability in Management and Structure Transport There is a separation of government hydroways port authorities; There is a lack of solutions to the sector agencies in the process of liquidation / privatization. Particularly in the federal sector of transport, the limits of performance of pu blic bodies are confused and overlapping. 22 Disability in Management and Structure A low effic

Transport The result of lack of investments and disability management structure transport generates the disturbing situation: the country's competitive disadvantage in re lation to its competitors in the international market. 23 URGENT AND IMMEDIATE ACTION To overcome the deficit in the sectors of transport ports, sanitation and energy are required investments of about $ 40 billion a ye ar over the next five years. is evident the need of increased investment private. All situations conducive to an investment boom are present technology, investo rs, mobilize resources. Less than one: the security of the investor. 24 RECOMMENDATIONS Increasing competition in the transportation of cargo reduce the limitations t hat exist today to chartering foreign vessels on the part of Brazilian companies of coasting. • In Brazil, the provision of services to maritime cabotage in goods is low. . • The space offered by the vessels is insufficient to meet demand. 25 RECOMMENDATIONS Improve legislation on railroad right of way / mutual traffic and solve the prob lem of raids in the area ranges The settings on the right of way and traffic mutual need to be improved, especia lly in rail access to Port of Santos. Another critical point is the invasion of the tracks in the area of access by rail, particularly in the ports of Rio de Ja neiro and Santos. The withdrawal and the release of traffic would improve the co mmercial speed of trains. 26 RECOMMENDATIONS Multimodality elect as far North to be pursued in terms of policies and public i nvestment. Logistics domestic or international - can not be practiced without the multimoda l environment exists, either from a legal standpoint, either in its own infrastr ucture. The Multimodality - is the concrete answer to solve the problem of the h igh cost of logistics. 27 RECOMMENDATIONS "Dry Ports" Implementation of "dry ports equipped to meet its role as a link between the industrial / commercial and ports and airports. The "dry ports" must be installed, necessarily, in a place served by two or more modes of transport, producing a stream of transport economics, rational, preser ving the environmental conditions and quality of life of communities in the regi on.

28 The transportation sector is link between production and consumption, but also b etween people and their needs for transportation in pursuit of their desires for social care. In Brazil, representing more than 6.4% of GDP, a level reached due to the perfor mance of over 40 000 carriers, 2.5 million employees and over 300 000 self-emplo yed carriers. Even with its undoubted importance to the economy, the transportation sector fac es serious problems that burden the price of Brazilian products in domestic and foreign markets, impacting the economic and social development of the country an d aggravate the risk of having a transport unable to meet the growing demand for quality. 29 Some of these symptoms: • Fleet road with an average age of about 17.5 years; • Locomotives mean age 25 years; • Roads with poor conditions, poor or inadequate in 59.1% of cases; • Low availability of infrastructure railway infrastructure; • Very low availability of multimodal terminals; • Waterways are still little us ed for disposal of agricultural harvest. The availability of transport infrastructure in the country is incompatible with his greatness and wealth, becoming a serious problem for the economic and socia l in Brazil. 30 According to GEIPOT (2000), are only 164,213 km of paved roads, 28,056 km railwa y lines, which in terms of density equal to 55% of supply in China, 40% in Canad a, 32% in Mexico and 12% in the U.S. and in relation to the mesh Brazilian water ways are about 47,000 km of navigable rivers. 50 45 40 35 30 25 20 15 10 5 0 Density of Transportation (km/1000 km2) 39.6 45.3 Highway Canada 10.5 17.8 8.4 0.3 15 Mexico Country China 14.5 17.3 5.6 3.4 Brazil Rail Waterways 6.1 Comparison between the Transport Infrastructure of Brazil, Canada, Mexico and Ch ina (Source: CNT / Coppead, 2002) 31 38.8% of the length of the highways are surveyed and roadway in poor condition, poor or very poor, 40% of the extension are not marked properly, 22% do not have sidewalks and 18% had plaques covered by forest. 57.6

1.2 0.3 5.1 Good Good Fair Poor Poor 35.8 State General of Highways (CNT, 2002) The poor quality of existing road infrastructure, not only contributes to the in creased cost Brazil, but also generate significant social impacts, such as those arising from the high number of road accidents in Brazil. 32 According to the Statistical Yearbook of GEIPOT are more than three accidents pe r km of highway in the country. According to estimates of the Program to Reduce Accidents on Roads, MT, traffic accidents rank second among the biggest public h ealth problems of the country, second only to malnutrition. About 62% of hospita l beds for the trauma are occupied by victims of traffic accidents. It is estima ted, according to CNT / COPPEAD (2002), about 34,000 people die on Brazilian roa ds by year, number 10-70 times higher than in developed countries. Brazil Italy USA United Kingdom Japan Germany France Canada 0 50 100 150 200 250 Index of road fatalities by 1000 km of roads (BTS and GEIPOT 2001) According to the STOP program of the Ministry of Transport, only in 2002 were mo re than 108 800 accidents on federal roads, causing more than 59,615 wounded. On ly to meet the victims of these accidents, for example, are intended by SUS abou t 13% of its annual budget. 33 Fundamentals of Transportation Transportation is one of the most visible elements of logistics operations. Bowe rsox & Closs (2001). For most transport companies is usually the most important element in logistics costs. Environment characterized by: • Far dynamism • Maxim um Availability • Fluctuation in demand • competitiveness • Globalization 34 Definition Logistics must be projected and specify: The ways in which production and dema nd must be made compatible; How your geographical differences should be implem ented. Goal Making goods or services reach the right moment and place accurate and desired c ondition. 35 Spatial Planning What is the main problem to be treated? Delivery Time Location will Time to replenish inventories in warehouses flows that will go in each warehouse 36

Temporal Planning "It addressed a major concern in the delivery time of orders." • Evaluate altern ative methods of transport; • Determine the best plan to manage inventory; • Spe cify the appropriate means of transmission and processing of orders. 37 Good planning principles for the distribution Differentiate "The level of servic e need not be the same for all Strategies • Using the curve ABC • The distribution channel of the product shoul d follow certain criteria - Location - Turnover of goods - Alternative Channels products. " 38 Principles for good planning strategies Composite composite has lower costs than a strategy "A Strategy simple or pure. "Factors that influence weight Volume Batch size volume sales Emergency Service Level 39 Economy of scale and cost reduction Principles for good planning Consolidation "Creating large shipments from several smaller players." Example of a load The Profit "The smaller the size of 40 Good planning principles for compensation of costs "The concept is to balance th e costs. However, understanding that their major cost items and services have conflicting or opposite behavior. " Transportation Inventory Production X X X Distribution Service Level Cost logist ical Loses X Wins Loses X Wins 41 Concept for system planning "Study of the variables that make up the logistics system in order to reduce the level of service." Shorter planning Longer planning Planejament the (T) Higher cost Lower cost Cost (U.S. $) 42 The Transportation as a Means of Reducing Inventory Reduction Techniques to Stoc ks • Direct delivery - Delivery direct from the factory to the customer + Lack of CD (and thus inventory) - increase in delivery time and legislation (L evy ICMS by the city, different inter state)

• Cross-docking - movements;. vehicle transf. for delivery + Lack of stock on the CD - co-ordination and increase the delivery time 43 • Just in Time - receiving MP in accordance with the production + Reduction of inventory in the factory of MP - good coordination with all vendo rs • Milk Run - collections of MP's needed to produce + Reduction of inventory at the plant PM (kits) - good coordination with all pro viders - increased freight cost 44 • Drop & Hook - leave a semi-trailer in operation + More rapidly in the withdrawal of the product - space for the semi-trailer or body - increased active (semi-trailer or body) 45 • Presentation Night - operation from 20:00 to 6:00 pm + More rapidly in the withdrawal of the product - for receiving structure at nig ht • Window Hours - Delivery by appointment + Knowledge of the time of delivery time of knowledge production - good coordina tion with the production 46 BRAZIL - MATRIX OF TRANSPORT (FREIGHT) 1993 Pipeline RAILWAY 22.61% 4.21% 0.29% Airway Waterway (*) 11.15% 2000 RAILWAY 20.86% 4.46% pipeline Airway Waterway 0.33% (*) 13.86% ROAD 61.74% SOURCE: AET - 1998 / GEIPOT. (*) Includes inland, coastal and long d istance. ROAD 60.49% SOURCE: AET - 2001 / GEIPOT. (*) Includes inland, coastal and long d istance. The unbalance of the Brazilian transport matrix is one of the factors that lead the industry with a low efficiency. Due to development policies supported by rai lroads but less efficient for large displacements, today the road freight transp ort accounts for about 60.5% of freight in the country, faced with only 20.9% of railroad transportation and about 13.9% of waterways. 47 This situation differs greatly from the participation of road, rail and waterway transport in the matrix of other countries of continental dimensions like Brazi l. This demonstrates the use of excessive concentration of railroads in the coun try, although it presents a number of positive characteristics such as flexibili ty, availability and speed, makes the country bear large transportation costs. I ts outstanding low productivity, its small energy efficiency, their lower levels

of safety and high levels of emissions, eventually strain the Brazil Cost. Acco rding to the CNT (2002), while in Brazil the Modal Roadway participates with 60. 5% of the total cargo, the U.S. participation is 26%, Australia 24% and 8% in Ch ina. 48 Array of cargo transportation: Brazil vs. USA If they are excluded from primary products (minerals and agricultural products), the share of road rises to: 92% in shipments 89% in distribution and 84% in sup ply 49th International Transport Policy Macro Vision International Logistics Negotiation Country Origin Control and Surveillance Country Destination Transportation / Movement Area Clearance Clearance Zone Retroportuário Retroport uário Exporter Importer Boarding Landing 50 Packing Storage Product Logistic Concepts Trading Transport Movement Documentation 51 International Logistics Customers AND suppliers Clearance Zone Retroportuário B Exporter Transfer Clearance Zone

F Importer Boarding Landing C Transfer G Retroportuário D H 52 International Logistics Planning Professional Qualification Packaging and Handling Conveyor system invol ved in the Third International Terminals Brokers National Carrier 53 Modal Transportation Technological Characteristics of Transportation • Volume • transportable structure of origin-destination flows • Transport • Mom ent specific value of the product (fixed capital per unit) • Special problems (d elay in delivery and so on ...) 54 • Specific weight, volume and shape • Physical aspects: bulk, liquid or gaseous fuel, manufactures. • Temperature Resistance - perishable cargo or not • Resista nce to shipping and handling (fragility) • Loads • Wild live or dead load. Threa t to the environment. 55 Modal Transportation - - - - - - Rail Maritime Transport Water Transport Air Tra nsport Trucking Transport by Pipelines 56 Characteristics that differentiate Modal Transport - - - - - - Density of the network and spatial distribution of terminals; Carryi ng capacity per unit; fleet of vehicles available, type and quantity, trading sp eed, storage facilities and equipment for loading and unloading; Interface with other modes of transport - terminals with ease of transhipment cargo - Energy ef ficiency - Cost per mileage. 57 RAIL

58 Rail Main Railways Map Map The Brazilian railway system was built by state companies. The meshes were opera ted by RFFSA,€FEPASA and CVRD (Companhia Vale do Rio Doce). New Configuration of Railway Companies • Latin America • Logistics Company Northeastern Railway - CFN • Estrada de Ferr o Carajás - EFC • Estrada de Ferro Vitória Minas - EFVM • Railroad Trumpets - EF T • Estrada de Ferro Jari - EFJ • Estrada de Ferro do Amapá - EFA • Ferrovia Cen tro-Atlantica SA - FCA • Ferrovia Bandeirantes SA - Ferroban • Ferrovia Norte SA Brazil - FERRONORTE • North - South Railway Novoeste • SA • Railroad Parana SA - Ferropar • Ferrovia Tereza Cristina SA - FTC • MRS - Logistics SA • Network Ra il Federal SA - RFFSA 59 Source: Ministry of Transport Transport Process • Transport Unit "TRAIN" • Have one or more locomotives in a train wagon • A has 20 tones tare • A locomotive has 120 tones tare • A wagon carries up to 96 tone s • Three locomotives carry up to 100 wagons • System wheel-rail reduces frictio n materials making it highly energy efficient • The biggest cost of operating a railroad is the fixed cost 60 Logistical Advantages • • • • • • • Transporting large amounts of cargo per trip traverses long distan ces Flexible respect of goods cost less in relation to the road for large volume s of goods Speed is good for long distances are not affected by weather or traff ic may use the competitive wagon or your own container for transport 61 Disadvantages Logistics • Has a high cost and low security (Brazil) for products with high added value a nd small children • Has output frequencies lower than the real road • Your trans it time is longer • Anti-cost and inefficient for short distances • The costs of handling • There are high is for service to the home • It is inefficient for so me products 62 AIR TRANSPORT 63 Transport Process • Has a system of traffic control and navigation systems • air traffic are gener ally offered by the government of each country • Carriers are responsible for pr oviding its own terminal and facilities management • Most are variable costs (op erating cost) • There is container suitable for such transport 64 Logistical Advantages • • • • • Emergency Transport Transport faster reduction of inventory levels and consequent reduction of inventory cost Priority for perishables Lower Cost Heal th Insurance

65 Disadvantages Logistics • • • • • • Capacity constraint inability to transport the bulk Impossibility of products wi th low unit cost Restriction of hazardous items high cost of transport is hinder ed by time and traffic 66 MARITIME TRANSPORT 67th Transport Process • • • • Has a system of traffic control and maritime traffic systems are general ly offered by the Government of each country present some ports are privatized t erminals include all equipment for loading and unloading of goods 68 69 Logistical Advantages • Carries large amount of cargo per trip traverses long distances • • Flexible • Transporting the goods as dangerous goods, bulk cargo, liquid, gas and vehicles or containers • Feature • lower operating cost of products with lower added val ue 70 Disadvantages Logistics • • • • • Not for small loads or emergency loss of time in a discharge and transfer of tra nsport High levels of damage to the merchandise during transit Time Low Frequenc y / Periodic 71 Existing Major Types of Ships GENERAL CARGO VESSEL They are the vessels that carry various types of cargo, usually in small batches - sacks, boxes, boxed or wheeled vehicles, reels of newsprint, rods, barrels, d rums, etc.. Has rectangular openings in the main deck and covered calls load car go hatch, where the cargo is shipped to be stowed on the decks and basements. Th e load is hoisted or lowered from the pier to board or vice versa by the ship's equipment (sticks and load or crane) or by the existing port. 72 VESSEL HOLDERS - Containers Ships are similar to general cargo ships but also do not normally have one or tw o simple poles sticks without charge. The cargo hatch cover practically the enti

re area of the deck and are provided with guides to fit the containers in the ho lds. Some of these ships have special cranes. 73 74 They are the vessels to transport crude oil and refined products (alcohol, gasol ine, diesel, kerosene, etc.)..€Characterized by its superstructure and the aft m ain deck along with almost always having a midship bridge that goes from the sup erstructure to the stern. This bridge is a precaution for the safety of personne l, since the loaded tankers are replaced by a small freeboard, making your deck at sea is "washed" with frequency waves. TANK SHIP 75 VESSEL OPERATION BY ROLLING - RoRo (Roll-on Roll-off) are the vessels that the c argo in and out of basements and covered in horizontal or nearly horizontal, usu ally on wheels (cars, buses, trucks) or on vehicles ( usually trucks, trailers, pallets flyers, etc.).. There are several types of Røros, as portacarros door-ca rts, multi-purpose, etc.., All being characterized by the large side height and the ramp at the aft of the vessel. 76 BULK CARRIERS Are vessels for the transport of large quantities of bulk cargo: corn, wheat, so ybeans, iron ore, etc.. Are characterized by long main deck where the only highl ight is the basement. 77 Water Transport 78 Transport Process • • • • • are restricted to the beds has Waterway system of traffic control and navigation systems waterway traffic are generally offered by the government of e ach state privatized Terminals The terminals include all equipment for loading a nd unloading of goods 79 Logistical Advantages • Transporting large amounts of cargo per trip traverses long distances • • Flex ible • Transporting goods as dangerous goods and various types of loads • Featur e • lower operating cost of products with lower added value 80 Disadvantages Logistics • • • • • Not for small loads or emergency loss of time in a discharge and transfer of tra nsport High levels of damage to the merchandise during transit Time Low Frequenc

y / Periodic 81 ROAD TRANSPORT 82 Transport Process • • • • It has the most economically important roads (1.7 million km, only 10% paved) ro utes are some of the responsibility of Federal, State, Municipal and other termi nals are privatized privatized 83 Logistical Advantages • • • • • • • Flexibility of service am geographic areas scattered handling rela tively small lots is extensive and adaptable Service Quick Service Delivery to h ome or "door to door" Transporting all types of cargo containers and High Freque ncies 84 Disadvantages Logistics • • High costs for distances over 700km to the volume transported less compared to rail and sea transport (up to 45 Tons) Higher cost compared to rail and sea t ransport is hindered by time and greater intensity of traffic risk • • • 85 Pipeline transport Pipeline transport refers to the mode of transport in which the vehicle used to make up their own built infrastructure (pipelines), which were developed due to technological advance, allowing the shipment of goods over long distances, such as crude oil, gas, minerals . The ducts are tubes driven underground by pumping to overcome the obstacles of relief. This transport system is significantly redu ced congestion on highways and railroads, are examples of pipelines: pipeline, p ipeline, pipeline, aqueduct. 86 The story goes that the pipes were known as means for transporting liquid from a ntiquity: the Chinese bamboo with the Egyptians and Aztecs in ceramic material a nd the Greeks and Romans employed lead pipes. Among the means of transport, pipelines have become a preferred means of transpo rt both to meet the supply of refineries to meet the need of major consumption c enters of derivatives. 87 The duct system is the safest and most economical to transport oil and its deriv atives, linking producing areas, platforms, refineries, marine terminals, parks,

storage and consumer centers. The system of pipeline transportation also contri butes to increase road safety and reduce pollution caused by traffic of heavy tr ucks: only the pipeline of Belo Horizonte, for example, allowed to withdraw the road approximately 1000 trucks per day. For all these things, invest in the expa nsion, modernization and operational reliability of the Brazilian pipeline netwo rk is essential to meet the needs and increasing demands of the population. 88 Supporting Systems for Transportation 89 Computational Methods for project logistics system 1 - Computer Simulation 2 - Heuristic Model 3 - Algorithms variables that influe nce The total cost curve; Select the optimum amount of the deposit; Impact of location marketing. 90 Fleet Management Need companies have today in managing their fleets, trace routes, choose which r oute most appropriate, faster and more economical, make available such informati on to its employees and customers. 91 Collection and Distribution COLLECTION Deposit 1 CITY DISTRIBUTION Deposit 2 CITY B Source: Alvarenga, Novaes, 2000. Applied Logistics: Supply and Physical Distribu tion. 92 Scaling problems Physical capacity of vehicles Maximum working hours for crew members in atte ndance Imbalance Deadlines Meet the delivery time is crucial because it is one of the factors that determin e the level of service to the customer. Therefore a control of movements between collection and distribution are so important. 93 COLLECTION Deposit 1 CITY

Time of unloading, sorting, loading and waiting Collection time of charge of several clients time of the transfer of goods betwe en the time deposits DISTRIBUTION local distribution Time of unloading, sorting, loading and waiting Deposit 2 CITY B Source: Alvarenga, Novaes, 2000. Applied Logistics: Supply and Physical Distribu tion. 94 Cycle Time The cycle time and distance traveled in an area corresponding to combination of the following paths: • Time and journey from the depot to the delivery area; • T imes and routes between points in successive stops within the delivery area; • S tops on customers for collection or delivery of products; • Time and route of re turn from the delivery area to the warehouse. 95 Distribution zone X X B X4 XB2 XB3 X B1 X Way of the deposit area Region served Deposit Source: Alvarenga, Novaes, 2000. Applied Logistics: Supply and Physical Distribu tion. 96 Vehicle Routing "... find a sequence of visits to customers who make at least the way ... " Novaes, 2001 Roadmap visits CD Pocket of distribution or delivery zone Customers 97 Three key factors: Objectives: To provide a high level of service to keep the costs as low as possi

ble decisions: Customers must visit set of vehicles and their drivers programmin g and scheduling of visits Restrictions: Limits imposed by time constraints work day passer 98 Routing with Constraint "It is generating scripts for deliveries of goods vehicles within a region of di stribution while respecting the restrictions of working hours allowed per day an d the capacity of the vehicle to be used in the fleet" Novaes, 2001 99 Technology influences the following factors: • • • • • • • • • • • Focus on Customer Value Aggregation Relationship with supp liers Arrive on Optimizing Customer Cycles cheaper inputs Stocks Reduce Expediti ng Innovation Approach to Logistics Financial Control Differentiate Product 100