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Preface

 Transportation systems move goods between origins and destinations using vehicles
and equipment such as trucks, tractors, trailers, crews, pallets, containers, cars, and
trains.
 Transportation represents the major role and most important element in logistics
because of its considerable cost.

Transportation  Transportation occupies one-third of the amount in the logistics costs and
transportation systems influence the performance of logistics system hugely.
LOGISTICS MANAGEMENT

Preface Preface

 A transportation system is an organization that designs, arranges, sets up, and  Transportation takes a crucial part in the manipulation of logistic.
schedules freight-transportation orders during a given and limited time period with
technical restrictions at the lowest possible cost  Transporting is required in the whole production procedures, from
manufacturing to delivery to the final consumers and returns.
 The operation of transportation determines the efficiency of moving products.
 Only a good coordination between each component would bring the
 The progress in techniques and management principles improves the moving load, benefits to a maximum
delivery speed, service quality, operation costs, the usage of facilities and energy
saving.

Interrelationships Between
Transportation and Logistics

 Without well developed transportation systems, logistics could not bring its
advantages into full play.
 Besides, a good transport system in logistics activities could provide better
logistics efficiency, reduce operation cost, and promote service quality.
 The improvement of transportation systems needs the effort from both
public and private sectors.
 A well-operated logistics system could increase the competitiveness of the
enterprises.

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Transportation
Fundamentals

Advantages and disadvantages of

five modes of transportation Distribution Channels

 A few manufacturers sell their products directly to end users.

 For most of them, bringing products to end users may be a complex
process that needs sales agents or brokers who get goods from producers
and distribute them to retailers  the cost of products may increase

Distribution Channels Transportation Participants

 Can be classified into four groups:

1. Channel 1 : the channel has no intermediaries  manufacturers send their products to end
users directly. (E.g.: cosmetics & encyclopedias sold door to door and handicrafts sold at
local market are brought to the end user)
2. Channel 2 : Retailers play intermediary roles (e.g.: retailers in the tire industry buy from
manufacturers and then resell products to their customers).
3. When manufacturers sell their products only in large quantities and retailers are not able to
purchase these large quantities, wholesalers play the role of intermediary between
manufacturers and retailers. Channel 3 is typical in the food industry.
4. Channel 4 is as the same as channel 3, except that a producer contracts with a broker or
sales agent who sells products to wholesalers (e.g., in the clothing industry)
1. Shipper
 One of the best ways to transport freight is to use shipper services.
 Shippers can move freights from origin to destination at the lowest cost and during a
specified time period.
 The shipper ensures many transportation services such as particular pickup and delivery
times, accurate and timely exchange of invoicing and information, zero loss and
damage, and specified transit times.
 Some Shippers are producers of goods, this is while some others are just intermediary firms
(brokers) which attribute demand to supply

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Transportation Participants Transportation Participants

2. Carrier 2. Carrier
 Carriers tender transportation services. a) Common carriers
 Railways, shipping lines, trucking companies, intermodal container services, and postal  Public airlines, motor carriers, ships, bus lines, railroads, and other freight companies.
services are different kinds of carriers.
 Common carriers’ routes are defined and published in advance, and rate tables and
 Generally, carriers are classified into three main classes: common carriers, private time schedules for transporting people and goods require the approval of regulators
carriers, and contract carriers
 The significant problem in using common carriers is that the numbers of customers
cannot be predicted in advance all the time.

Transportation Participants Transportation Participants

2. Carrier 2. Carrier
b) Private carriers c) Contract carriers
 Private carriers deliver their own products to end users, making shipments more  A contract carrier, on the other hand, is a kind of for-hire carrier agent that serves a
predictable. limited number of shippers under specific contractual arrangements.
 For example, the Wingman’s grocery store chain owns and operates its own private fleet  According to contract, they provide a specified transportation service at specified cost
of vehicles to deliver product and goods to company stores
 Contract carriers are the same as private carriers except they do not hold serve the
 Private carriers have an advantage over other carriers because of their flexibility and general public and in most instances have contract rates that are lower than those of
economy. common carriers.

Transportation Participants Transportation Participants

3. Government  In an economic view, carriers must plan the frequency of service between
any two points.
 Public transportation systems and facilities such as rail facilities, roads, and
ports are planned, constructed, and operated by governments.  Finding the best delivery frequency can decrease investment in
equipment and facilities.
 Governments also control the shipment of certain items (e.g., hazardous
and poisonous products) and tax the transportation industry.  Delivery frequency systems can be chosen between three approaches;
they are customized transportation, consolidation transportation, and
 Governments have traditionally been more involved in the practices of
frequent operation
carriers than in most other commercial enterprises; their regulations include
restricting carriers to certain markets and regulating prices they can
charge.

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Customized Transportation Consolidation of Transportation

 Truckload (TL) vehicles with a driver or driving team are dedicated to a specific customer.
 This transportation team starts its delivery trip when a customer asks for service.
 The truck is sent to the customer’s origin site to begin loading.
 Then it moves to the customer’s specified destination to unload.
 When driving team finish their tour, call the carrier’s dispatcher to ask for next assignment if
there is one.
 Otherwise the team should wait for next location.
 Carriers should attempt to use their on-hand resources such as crews, fleets, vehicles, and
trailers in the best possible way.
 To achieve this aim, developing the well-organized resource management and allocation
plans should be the core of the carriers’ management procedure in responding to the
maximum demands of transportation
 It is possible to take advantage of economies of scale in transportation
by substituting large shipments for small ones.
 The quantity policy, according to which the maximum capacity of a
vehicle should be used by carrying the maximum number of freight
quantity.
 The time policy, according to which the time of delivery is the most
important factor and shouldn’t exceed a preplaned time limits.
 The quantity and time policy, according to which both capacity and
time are critical factors, so a vehicle is sent either when the delivery time
limit arrives or when the freight quantity reaches to its maximum bound

Frequent Operation Railway Transportation Network

 Carriers provide fixed schedules that match their customers’ shipping
requirements.
 In this fixed schedule, delivery services are organized in advance—e.g.,
once a day or twice a week.
 In this approach, unpredictable numbers of customers in each service
period cause uncertainty in shipping requirements.
 To cover the most possible demands, carriers need a higher-capacity
investment (as compared to consolidating transport).
 Predictability of operation schedules and the accuracy of anticipated
shipping arrival dates are among the advantages of frequent service
 A railway network is made of single or double track lines that connect
several different train yards together.
 When a customer calls for a service, an appropriate number of railcars at
the nearest main yard are chosen, inspected, and transported to the
freight pickup point.
 Using blocks in train transportation systems has many economic
advantages such as full train loads and the management of longer car
strings in yards.

LTL Transportation Network

 Small vehicles pick up local traffic at origin points and deliver it to end-of-
line terminals.
 Then local traffic from different parts of the network are grouped and
consolidated into larger batches before they begin their long-haul journey.
Transportation
 Breakbulks are terminals where arrivals from several origin points are
gathered, unloaded, ordered, and consolidated for the rest of the long-
Decisions
haul transport
 LTL carriers usually have their own terminals, but they use public
transportation networks

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Classification of Transportation Problems Classification of Transportation Problems

1. Planning Levels 1. Planning Levels

 Strategic (Long Term) Planning
 The highest level of management and requires long-term investment.
 Strategic decisions develop general policies and extensively structure the
functional strategies of the system.
 Any physical changes or development in whole network such as locating
main facilities (e.g., terminals) are examples of strategic decision planning.
 Strategic planning takes place in international, national, and regional
transportation systems
 Tactical (Medium Term) Planning
 Medium term investment and is not as critical as strategic planning.
 This class contains a well-organized allocation and operation of resources
to improve system performance.
 Examples of this category are decision making in the design of service
networks, service schedules, repositioning fleets, and traffic routing.
 Most carriers’ decision making is at this level.

Classification of Transportation Problems Classification of Transportation Problems

1. Planning Levels 2. Variants of the Standard of TPs

 Operational (Short Term) Planning
 Short term and urgent decision making performed by local management,
yard masters, and dispatchers.
 Decisions at this level do not need large investments.
 The completion and adjustment of schedules for services, crews,
maintenance activities, and routing and dispatching of vehicles and
crews are examples of this level.
 The time-minimization transportation problem (TMTP) minimizes the time to transport goods
from m origins to n destination under some constraint of available sources and requested
destinations.
 Such problems especially arise when perishable goods are transported or when it is
required to transport essential items such as food and ammunition in the shortest possible
time in a war scenario.
 The fundamental difference between the cost-minimization transportation problem
(CMTP) and TMTP is that the cost of transportation depends on the quantity of commodity
being transported but the time involved is independent of this factor.

Models: simple Shortest Path Problem

Given a network with (non-negative) costs on the arcs, find a “shortest-

 One depot path” from a given origin node to a destination node.

 One customer
ORIGIN Oklahoma
E
 No capacity constraint Amarillo 90 minutes B 84 84 City
A
I
138 66 120
C 132
90
348 F 60 126
156 H
126
132
48 48
Note: All link times J
are in minutes D 150 DESTINATION
G
Fort Worth

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Shortest Path Problem:

Shortest Path Problem Shortest Route to Visit All Capital City in Indonesia
(Budhi Sholeh)

174
ORIGIN 90
Amarillo 90 B 84 E 84 258
A
I
138 66 120
C 138 132
90 228
348 F 60 288 126
156 H
126
132
48 48
Note: All link times J 384
are in minutes D 150 DESTINATION
294 G
336 Fort Worth

Shortest Path Problem:

Shortest Route to Visit All Capital City in Indonesia Models: satu variasi
(Budhi Sholeh)

 One depot
 Many customers
 No capacity restrictions

Travelling Salesman Problem Models: lebih dari satu variasi

Starting from the depot, find a shortest “tour” that visits all other nodes exactly  One depot
once and returns to the depot.
 Many customers
 Very difficult (NP-complete)  Capacity restrictions
 No “quick” method to find a “guaranteed” optimal solution

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38
Vehicle Routing - Clarke-Wright (1964)
Algoritma Sweep:

First assigns nodes to vehicles (cluster), then find best Two-phased  Initially, each (customer) is served by a separate route
route for each cluster. Heuristic from the depot.
Gillette & Miller’s
(a) Pickup stop data (b) “Sweep” method solution  Consider merging routes to nodes i and j:
Geographical Sweep Method
region Route #1 (1974) savings= sij = di0 + d0j - dij
Pickup 10,000 units
1,000
points
1,000
Route #3
8,000 units  Merge routes with maximum (positive) savings.
dA,O
4,000 4,000

3,000
2,000
3,000
2,000
A dO,A A
2,000 2,000
3,000 3,000 3,000 3,000 dO,A O
O dO,B dA,B
2,000 1,000 Depot 2,000 1,000 Depot
2,000 2,000 Depot Depot dB,O
2,000 2,000
Route #2 dB,O B B
2,000 2,000
9,000 units

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Other tour construction heuristics 40

 Nearest Addition

1. Start with a ‘tour’ of a single city, s1 = {i1}.

 Re-calculate savings for current set of routes:
 insert at beginning: savings= dX0 + d0A - dXA 2. Find the nearest city to the tour. Solve imin
S , jS
cij
 insert at end: savings= d0X + dB0 - dBX
Let the minimum be ckj where k S, j S.
 insert in middle: savings= d0X + dX0 + dAB - dAX - dXB

X
Let (i, j) be an edge incident to j on TSP tour.
X A B
B A X
A B Replace edge (i, j) in tour by (i, k) and (k, j).
(k is added to tour next to j).
3. Repeat from Step 2 until tour completed.
 Repeat merging until no positive savings.

Other tour construction heuristics 41 Other tour construction heuristics 42

 Nearest Merge
 Nearest Insertion 1. Start with each city as a subtour.
Select city k as nearest addition method. Insert it between cities i and h which 2. Find 2 subtours that minimize {cij :i  T1, j T2}
minimizes
3. Merge: T1 T2
cik + ckh cih (increase in tour length).
(i)

(Aft er select ing k (which is closest t o j), insert k anywhere in t he t our t o minimise
increase in t our lengt h.)
(ii)
T1 T2 min {cik  ckj  cij }
k ( i , j )T2

(iii) T2
T1 i k min {cik  c jl  cij  ckl }
( i , j )T1
j l ( k ,l )T2

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Other tour construction heuristics 43 Other tour construction heuristics 44

 Euclidean Problems
 Furthest Insertion
1. Greatest angle insertion
 1. Select k to maximize distance to current subtour.
 2. Insert k to minimize cik + ckj cij
(to minimize additional length of tour).
2. Convex hull insertion
- select k not on subtour to minimize cik + ckj cij

- break tie by
cik  ckj
cij

Practical Vehicle Routing & Vehicle Routing Problem with

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Scheduling Problems Constraints

 fleet of vehicles  VRP with Time Windows

 vehicles capacitated  VRP with Backhauls
 time restrictions  VRP with Pickup and Deliveries

Models: lebih dari satu variasi Transportasi & Transhipment

 Many depot  Transportasi:

 Many customers  dua kelompok nodes

 Capacity restrictions
 Transhipment:
 lebih dari dua kelompok nodes

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TUGAS

 Cari permasalahan TRANSPORTASI di sekitar anda:

 Definisikan masalah
 Tentukan model yang sesuai
 Selesaikan permasalahan tersebut