UNIT - III (Compatibility Mode)

Logistics Technology and Management
UNIT - III
Master of Business Administration

(Global Logistics & Supply Chain Management)
GITAM SCHOOL OF INTERNATIONAL BUSINESS
Why study Business Logistics?
 Wide career prospect

 Manufacturing & trading firms
 Service firms e.g. 3PL, freight forwards
 Learning institutions
 Government agencies
 Other service institutions e.g. restaurants, hospitals, etc
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Logistics Management
The process of planning, implementing and controlling the

efficient, effective flow and storage of goods, services, and
related information from point of origin to point of
consumption for the purpose of conforming to customer
requirements.
 Council of Logistics Management
 a leading organization for logistics professionals
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Logistics Management
many names including:
 Business logistics
 Channel management
 Distribution
 Industrial logistics
 Logistical management
 Materials management
 Physical distribution
 Quick-response systems
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-  Supply chain management
 Supply management
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Systems Approach/Integration
 Logistics is, in itself, a system

 It is a Network of activities with the purpose of managing
the orderly flow of materials and personnel within the
logistics channel.
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The system approach
 All functions or activities need to be understood in terms of how they

affect, and are affected by, other activities.
 The sum, or outcome of a series of activities, is greater than its individual
parts.
 Eg. High inventory level good or bad?
-Bad: warehouse cost, obsolete, cash flow, insurance, currency fluctuation
-Good: support demand
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Logistics role in the Economy
 Logistics is an important component of GDP
 Adds value by creating TIME and Place Utility(value)
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Logistics role in the Organization
 Supports Marketing
“Marketing management philosophy holds that achieving
organizational goals depends on determing the needs and
wants of target markets and delivering the desired
satisfactions more effectively and efficiently than
competitors.”
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4 P’s of the Marketing Mix
 Products- the set of utilities or characteristics a customer

receives as a result of a purchase
(quality, features, customer service, warranty)
 Price- the amount of money a customer pay for a product or
service
(discount, rebates, customers)
 Promotion- a product or service encompasses both personal
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 Place- component of the marketing mix support the levels of
customer service provided by the organization
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Types of Utility
 Logistics Types of Utility

Time utility
value created by making product or service availability when it is needed
Place utility
value created or added to product or service availability where it is needed
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Logistics allows efficient movement

to the customers
7 Rights of Logistics
Move the Right Materials/Products
In the Right Quantity
In the Right Service
At the Right Time
To the Right Place
At the Right Cost
To the Right Customers, Associates, Suppliers and Stockholders.
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The Logistics Evolution
 Fragmentation1960
 Evolving Integration 1980
 Total Integration2000
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Factors Impacting the

Development of Logistics
 Advances in Computer Technology

 Quantitative techniques
 Development of the systems approach
 Total cost analysis concept
 Recognition of logistics role
 Erosion of firm’s profits
 Profit leverage
 Economic condition
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Key Logistics Activities
 Customer Service • Parts & Service Support

 Demand forecasting • Plant & warehouse site
planning selection
 Inventory management • Procurement
 Logistics • Return goods handling
Communications • Reverse logistics
 Material handling • Traffic & transportation
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CASE STUDY - 1
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CONTENTS
 Introduction
 Problem Statement
 Solvent for Problem
 Results
 Conclusion
 References
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Traffic Telematics ?
 Structure of Telecommunications and

Informatics
 Also known as ICT (Information and
Communications Technology)
 It is the science of sending, receiving
and storing information thru devices
(telecommunication).
 It have been applied specifically GPS
technology integrated with
Information processing system and
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- mobile communications technology in
Automotives Systems.
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2 The primary standard that addresses
and enhances as (ITS).
Source: http://www.whnet.com/4x4/radio/contitel01.jpg
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Some practical applications of Traffic

telematics
Trailer
Vehicle tracking Tracking
Fleet management
Emergency warning system

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Satellite navigation Mobile data & Television 18

Some practical applications of Traffic

telematics
Intelligent vehicle technologies

Car clubs
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Problem Statement
 Major urban transport problems in India
Roadway congestion
Inadequate public transport
Traffic injuries and fatalities

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fuel use
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Environmental pollution To reduce congestion, pollution, fuel use

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Problem Statement
 Traffic Congestion is probably the most Visible,

Pervasive and Immediate transport problem in India’s
cities on a daily basis
 It affects all modes of transportation and all
socioeconomic groups
 For Example
 Speeds for motor vehicles in Mumbai fell by half from
1962 to 1993, from 38 km/h to only 15–20 km/h
(Gakenheimer, 2002)
 In Delhi, speed fell from 20–27 km/h in 1997 to only
15 km/h in 2002 (Times of India, 2002)
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ogistcS  Moreover, the periods of peak congestion in Delhi
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now last 5 h: from 8:30 to 10:30 in the morning and
from 4:30 to 7:30 in the evening.
 In Chennai, average speed is 13 km/h
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 Kolkata it ranges from 10 to 15 km/h overall but falls
to only 7 km/h in the center (Times of India, 2003)
 In Hyderabad, average speed is 14 km/h (The Hindu,
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Problem Statement
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Source: http://www.seas.harvard.edu/TransportAsia/workshop_papers/Padam-Singh.pdf
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Problem Statement
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billion barrels, or about 4.5% of the world total
Source: http://www.cslforum.org/india.htm
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Vehicle Sales
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Source: http://www-03.ibm.com/industries/automotive/doc/content/bin/auto_inside_india.pdf
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Automotive Investments in India
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Source: http://www-03.ibm.com/industries/automotive/doc/content/bin/auto_inside_india.pdf
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Percent distribution of urban trips
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Source: http://policy.rutgers.edu/faculty/pucher/FINALarticleTransportPolicy.pdf (Pendakur
2002 and World Bank 2002.)
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Solution
 Transportation systems worldwide are undergoing a shift from

supply side techniques to demand management
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Road Pricing and Congestion Charging
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Road Pricing in Urban Region
What is it ?
 Road pricing: used to cover the various charges

includes fuel taxes, license fee, tolls and congestion
charges, where applied for the use of roads
 Road pricing has two distinct objectives Charge for
use of road or area
 Fixed or time-of-day fees
 Paid in a variety of ways: Congestion pricing
 Electronic payment like (HOT) lanes or
Revenue restricted area of a
 Cash payment
generation such city
 Prepayment
as Tolls Roads
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Why ?
 Curb traffic demand to reduce

congestion, pollution, fuel use
 Manage road space for highest
productive capacity to reduce
congestion, pollution, GHG emissions,
and fuel use
 Generate revenue for roads, public
transportation, impact mitigation, other
things
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Aim
 Discouraging Driving: Making journeys less polluting and more efficient

 Management: Congestion pricing/value pricing. Controlling when and
where people drive, e.g. London congestion charge, peak/off-peak charges
 Encouraging use of public transport as a greener way of getting around
 Financing: raising money to pay back the construction of the road, or to
build new facilities for the public
 SOME DISADVANTAGES
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 Burden falls more heavily on the poor drivers than the rich –
regressive taxation
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 New toll roads in a largely free system may be seen as unjust
 Revenue use – can consumers be sure that their money is being well
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Why Implement Congestion Pricing?
 To boost the environmental performance

 To reduce the illness rate.
 If we consider the Stockholm, as an example their implemented the same
telematic solution to reduce the congestion and pollution level. The
outcome result is as follows:
 Traffic reduced overall by ¼
 Queue times down 30-50%
 Emissions down 14%
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Why & Where Road Pricing and

Congestion Charging
 Traveler response to changes in price of travel changes:

 When travel is done
 How travel is done
 Where goods and people travel
 Incidence of total travel
 Urban centers facing serious traffic congestion
 Motorways where current or future congestion threatens loss of peak period
capacity
 Corridors or regions where added revenue is needed from vehicle users
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based fees to manage pollution hot spots, truck tolls to divert goods
movement to rail or other corridors
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Road Pricing and Congestion Charging:

How Much?
 Coin machine & attended toll collection: 300 vehicles/hour capacity

 Automated toll collection: 1600+ vehicles/hour per lane capacity
 using Direct Short Range Communication (DSRC) transponders
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RESULTS Some Recent Developments
 1970s: Singapore cordon charge, full electronic road pricing (ERP) in 1996
 1986: Bergen, Norway, toll ring
 1990-2003: Oslo, Trondheim & other Norwegian cities adopt toll rings
 1995-96: Southern California high occupancy toll lanes (I-15, SR-91)
 2000: Congestion pricing of NY bridges
 2002-2004: Swiss, Austrian truck tolls
 2004: London cordon charge
 2005: Germany tolls autobahn trucks
 2006: Stockholm congestion charge
 2005: Minnesota, Colorado HOT lanes
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Approaches for congestion charging
 Cordon entry permit

 Payment at toll plaza – e.g. Norway cordon systems
 Area License
 Paper license or Transit Pass for visual inspection, database option – e.g.,
Singapore 1970s
 Virtual license with digital camera enforcement – e.g., London Congestion
Charge
 Electronic Road Pricing – e.g., truck pricing systems Swiss, Austrian, German
 Corridor or spot tolls approach - e.g., most toll lanes
 Workplace parking levy, parking excise tax, and cash-in-lieu-of-parking incentives
 How much they charge
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Some Cost-Effectiveness Matters
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For Implementing Road Pricing steps
 Articulate system objectives

 Affirm legal authority: who can implement? Under what conditions? On
which facilities?
 Determine implementation framework: Area license fee? Cordon
charge? Corridor time-of-day tolls? Use of toll revenues?
 Design & evaluate road pricing plan
 Adopt system plan, financing scheme
 Procure management & technology services: system development,
integration, operation, enforcement, evaluation, marketing
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CONCLUSION
 The development of cooperative telematics services increases the value of

telematics services and can speed up the above mentioned expansion of
the market.
 The key challenge is to overcome the network effect and it requires a
complex partnership between the various stakeholders including public
authorities to create conditions for the establishment of a mass market.
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‘E’, Logistics and Supply

Chain Management
Coordination
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E-Commerce, Logistics and Supply Chain

Management
Supply Chain: a network of activities that deliver a finished

product or service to the customer.
 The connected links of external suppliers, internal
processes, and external distributors.
External Internal External

Suppliers Functions Distributors
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INFORMATION
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Logistics
 The process of planning, implementing, and controlling the

efficient, cost-effective flow and storage of goods,
services, and related information, from point of origin to
point of consumption, for the purpose of conforming to
customer requirements.
 Components of an Integrated Logistics System
 External Supply: links suppliers to operations process
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flow
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customers
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External Suppliers
 External suppliers provide the necessary raw materials,

services, and component parts.
 Purchased materials & services frequently represent 50% (or
more) of the costs of goods sold.
 Suppliers are frequently members of several supply chains –
often in different roles.
 Tier one suppliers: Directly supplies materials or services
to the firm that does business with the final customer
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one suppliers
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two suppliers
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Developing a Supply Base
Criteria for Choosing Suppliers

 Cost: Cost per unit & transaction costs
 Quality: Conformance to specifications
 On-time delivery: Speed & predictability
Size of Supplier Pool: 1 or many per item
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One Supplier per Item

 May only be one practical source for the item
 Patent issues, geography, or quality considerations
 The supply chain is integrated to support JIT or EDI
 Making multiple suppliers impractical
 Availability of quantity discounts
 Supplier may be more responsive if it’s guaranteed all your
business for the item
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 Deliveries may be scheduled more easily
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Multiple Suppliers per Item
 No single supplier may have sufficient capacity

 Competition may result in better pricing or service
 Multiple suppliers spreads the risk of supply chain
interruption
 Eliminates purchaser’s dependence on a single source of
supply
 Provides greater volume flexibility
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 Antitrust issues
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disruption of material flow
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Partnering with Suppliers
 Involves developing a long-term, mutually-beneficial

relationship:
 Requires trust to share information, risk, opportunities,
& investing in compatible technology
 Work together to reduce waste and inefficiency &
develop new products
 Agree to share the gains
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Internal Functions
 Vary by industry & firm, but might include:

 Processing
 Purchasing
 Production Planning & Control
 Quality Assurance
 Shipping
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Distribution
Getting the right material to the right place at the right time in the
right quantity:
 Traffic Management:
 The selection, scheduling & control of carriers (e.g.:
trucks & rail) for both incoming & outgoing
materials & products
 Distribution Management:
 The packaging, storing & handling of products in
transit to the end-user.
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Trends in Logistics Management
 Increased awareness of strategic benefits of integrated logistics

management
 Third-party logistics services
 Just-in-time logistics
 Environmental sensitivity
• NOW: Supply chains create tremendous amounts of waste material to
protect goods in shipment and storage.
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- • FUTURE: Distribution will use reverse logistics, the recycling or
proper disposal of cardboard, packing material, strapping, shrink wrap,
pallets, etc...
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Supply
Chain for
Milk
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Supply Chain Management
 A philosophy that describes how organizations should manage

their supply chains to achieve strategic advantage
 The objective is to synchronize requirements of the final
customer with the flow of materials and information along the
supply chain to reach a balance between high customer service
and low cost
 Supply Chain Management entails:
 Coordinating the movement of goods and delivery of
services.
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-  Sharing information between members of the supply chain.
 For example: sales, forecasts, promotional campaigns,
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SCM: the need to reduce variability or the impact of

variability on the supply chain
 Supply network variability

 late deliveries: weather, equipment breakdown
 quality problems
 Manufacturing process variability
 machine reliability and equipment failure
 changeovers / setups / part expediting
 design and quality problems
 Customer network variability Carrying safety
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inventories are the most
- common approach to
 equipment failure dealing with variability
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CASE STUDY - 2
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Mobility Services in Urban Region
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Objective
 Required progress in human transit to achieve a more efficiency and to

meet the minimum service level of different stakeholders have different
objectives
 The service should cover the whole Urban Area
 Reduction of “non - full” driving vehicles
 Safe journey with minimal price
 Provide service till End User
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Optimize the transit services by considering the
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urban and intercity area by using well informed
quality services Source: http://www.camden.gov.uk/ccm/cms-
service/stream/image/?image_id=338326
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Introduction
 Transport, or Transportation, is the movement of people and goods

from one place to another
 Two kinds of transportation
 Freight transportation
 Load with goods
 As a ship, or vehicle of any kind, for transporting
 Provide reliable delivery and pick up of goods
 Traveler transportation
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- 4926-BC7D-10050C2F4BB2/0/chp_transport.jpg
 Intercity Transit
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Introduction (2)
 Transit commonly refers to Public transport, the passengers use transportation

systems to travel
 Alternative calls: Public Transit or Mass Transit
 Transit can usefully be classified in a variety of ways (wikipedia.org):-
 Larger urban areas with multiple interconnected
 uses Metro/underground, bus, taxi, tram and ferry
 Smaller urban areas
 uses buses and taxis
 Rural areas
 rely on buses, taxis and share taxis
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-  Inter-urban and regional transport
 based on the train, coach and the plane
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 uses the plane
 Alternative infrastructure (Road, rail, water and air)
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Introduction (3)
 Confusion about Urban Terms

 The City as a Municipality or Local Authority Area
 The City as a Metropolitan Area
 The City as an Urban Area
 Urban Area means
 Never be the same as a municipality
 It include many municipalities, though in the case of many geographically
large municipalities
 The urban area will be smaller than the core city
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 One who travels or has traveled, as to distant places
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Stakeholders in Transportation
 Stakeholders are groups, who have an interest in the business activities

 In Transport, stakeholders objectives include:
 Passengers or freight users:
 desire low prices/costs and reliable safe predictable journeys
 Employees:
 who seek high wages and good working conditions
 Operators:
 who want minimum costs, maximum profits and also to meet government targets
 Managers:
 who seek bonuses and promotion
 Shareholders or Owners:
 who want maximum profits, dividends and growth
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 who want excellent transport infrastructure and services with minimal negative externalities
 Government:
 who want satisfied voters, investment in new infrastructure (from the private sector) low expenditure and high
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tax receipts Source: http://tutor2u.net/default.asp
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Stakeholders in Transportation (2)
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Source: http://ops.fhwa.dot.gov/program_areas/special_events_mgmt/mng_trvl_exsum/images/fig3_2.jpg
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 In overall context, consider the three main stakeholders in transportation

 Customers,
 Society and
 Service Operators
 Each stakeholder has its own level of services to meet their requirements
 Level of service in Transportation
 It is a measure by transportation planners to determine the quality of service on transportation
infrastructure.
 LOS of each stakeholder:
 Customer
 Travel/Trip time
 Flexibility
 Comfort
 Availability
 Cost
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 CO2
 Noise
 Providing space
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 Reliability
 Business profits
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Travel/Trip time Represented in simplified form

Flexibility
Comfort
Availability
Cost
Customer
Service
Operators
Reliability
Business gains
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CO2
Noise
Providing space Unmotorized
Motorized
62
Problem Identified
 Consider the existing and future urban traffic
 Problems identified:
 Traffic Congestion and environmental effects
 Inflexibility for traveler
 Imbalance for customer demand and available service
 In urban mobility service, stakeholders causing conflicts because of having

different service objectives
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-  Fixed tariff even in having less demand
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An example...
 Consider an issue which shows necessity of

logistics in urban areas for human mobility:
 Mr.‘X‘ wish to travel from University to südpark.
 To reach his destination having different mobility
sources
 If ‘X‘ takes cab, it costs around 50 € & 30 mins
journey time
 If ‘X‘ walks to bus stop and takes bus, it costs
around 30 € & 50 mins journey time
 If ‘X‘ travel by train, it costs around 40 € & 35 mins
journey time
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- mins journey time.
 Finally, Mr.X has to reach his destination with less
monetary value, comfortable journey with
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minimum travel time.
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Motivation
 If customer make out his objectives

 Less pay even in urgency
 Comfort
 Any time service accessibility
 Quality based service
 The other stake holders were unable to meet their objective
 Traffic congestion
 Air pollution
 Parking problem with more custom vehicles
 More usage of natural resources like petrol, diesel
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 Increasing accidents
 Stakeholder conflicts
623.95  Different stakeholders have different objectives
 Optimize stakeholder objectives
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Various Modes
 The action of human mobility in urban area

 Why to move
 Continuous change required in the position of a body relative to a
reference point.
 Where to move
 home, workplace, stadium, production facility, warehouse,
department store, with that destination always being the place of
activity, e.g. staying at home, working, running, producing, storing,
distributing.
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-  Mobility is not a static concept it always unstable and change position
from one place to another.
 Various modes of mobility
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Bicycle Personal car Rent a car Car pool

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Present urban area structure
Population (billions)
Year 1950 1975 2000 2005 2030
Total 2.52 4.07 6.09 6.46 8.20
Urban 0.73 1.52 2.84 3.15 4.91
Rural 1.79 2.56 3.24 3.31 3.29
Urban %
29.0 37.2 46.7 48.7 59.9
 In the last 50 years, 30% of the world’s population is increased

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-
 People run their own vehicles to meet their objectives
 Due to this society gets effect with increase traffic and environment effects
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 Getting business loss for transport service providers
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An Overview
Let us evaluate the level of services Unmotorized

Motorized
Travel/Trip time
Flexibility
Comfort
Availability
Cost
Cost Customer
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An Overview
 Let us evaluate the level of services Unmotorized

Motorized
 Conceived stakeholders with Human mobility modes
Travel/Trip time
Flexibility
Comfort
Availability
Cost
Cost Customer
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CO2
CO2
Noise
Noise
Providing space
Providing space
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An Overview
 Let us evaluate the level of services Unmotorized

Motorized
 Conceived stakeholders with Human mobility modes
Travel/Trip time
Flexibility Service
Comfort Operators
Availability
Cost
Cost Reliability
Reliability
Customer Business
Businessgains
gains
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CO2
CO2 Between Customer, Society and Transport
Noise
Noise
Providing
Providingspace
space service operators causing conflicts because
of having different service objectives 70
Comparative statement of Mobility mode in urban

transportation
Travel Time Depends on person energy Comfort Less CO2 Nil Space Not Required
Flexibility No Availbility Any time Noise Nil Business gain No Serivce provider
Travel Time Depends on person energy Comfort Less CO2 Nil Space Not Required
Flexibility No Availbility Any time Noise Nil Business gain No Serivce provider
Travel Time Less but no long drivers Comfort Better CO2 Min Space Fully
Flexibility Least possible Availbility Any time Noise Min Business gain Run by own
Travel Time Very Less Comfort Best CO2 More Space required
Flexibility possible Availbility Request Noise More Business gain Yes, to provider
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Travel Time Very Less Comfort More CO2 More Space required
Flexibility good Availbility Any time Noise More Business gain Run By own
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Travel Time Medium time interval Comfort Better CO2 More Space required
Flexibility Less possible Availbility Some time Noise More Business gain Yes, to provider
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A Root for over Conflicts
 Since research began by conceiving the issues like car emissions, traffic congestion,
time delay and cost criteria for urban people etc., from which developed a concept
called car pooling
 Car Pooling
 It is ridesharing of individuals who are going to the same destination
 It saves environment (significant pollution and noise reduction)
 It saves economy (fuel, parking, road investment)
 Social benefits (car accidents reduction, socialization benefits)
Travel Time Less Comfort Better CO2 Minimum Space required
Flexibility Possible Availbility Some time Noise Minimum Business gain to provider and customer
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-
 Economize money on the costs of running personal car and buying fuel
 Economize on parking cost
623.95  Riding can be quite stressful, both mentally and physically, but this service can give an
interruption from stress
 Be like a passenger and can go other things like paper reading, have a relax or do some
work etc
 Reduction in pollution and congestion. 72
A Root for over Conflicts (2)
 Here typical variable costs for a 3.7-miles (6 km) round trip for
different modes:
 From the previous example
Car Pool Service Conventional Rental Private Car Taxi Bus
2€ 10 € 3€ 4€ 1.5 €
 Noise, safety and security issues are same as personal

car, but concept is to reduce the personal cars and to
control the congestion from their
 The additional benefits like
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 Provides cost savings
 Reduces parking problems
623.95  Reduces congestion and pollution
 Provides a more sociable commute
 Reduces the number of single occupancy cars
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A model
Carpool
Beneficial to society and users
Trip Generation Modal choice

4-Step Model
Trip Distribution Traffic Assignment
A transport model is a simplified representation of a complex transport system

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Four-Step Transportation Model
 Divide study area into study zones

 4 steps
 Trip Generation
 Decision to travel for a specific purpose (eat lunch)
 Trip Distribution
 Choice of destination (a particular restaurant? The nearest restaurant?)
 Mode Choice
 Choice of travel mode (by bike)
 Network Assignment
 Choice of route or path (Elwood to Lincoln to US 69)
Trip Generation What trips will they make?

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Trip Distribution Where will they travel?
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Modal spilt How will they travel?
Traffic Assignment What routes will they use?

What happens to travel times?
75
Trip generation
 Trip Generation –to predict the number of trips beginning from

and destined for each zone based on population
 Model estimation
 Estimate new trip production and attraction rates
 Perform statistical tests to measure significance of differences
between existing and new rates
 Model structure options
 New variables like travelers, distance, trip purpose etc.,
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 Identify weaknesses and improve functionality
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 Recode existing program with new input data
76
Trip generation Model
 Calculate number of trips generated in each zone

 500 Households each making 2 morning trips to work (avg. trip ends ~ 10/day!)
 Worker leaving job for lunch
 Calculate number of trips attracted to each zone
 Industrial center attracting 500 workers
 McDonalds attracting 200 lunch trips
 Number of trips that begin from or end in each zone
 Trips for a “typical” day
 Trips are produced or attracted
 3 variables related to the factors that influence trip production and attraction (measurable
variables)
 Density of land use affects production & attraction
 Number of dwellings, employees, etc. per unit of land
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-  Social and socioeconomic characters of users influence production
 Average family income
 Education
623.95  Car ownership
 Location
 Traffic congestion
 Environmental conditions
77
Trip generation Model (2)
 Trip purpose
 Zonal trip making estimated separately by trip purpose
 School trips
 Work trips
 Shopping trips
 Recreational trips
 Travel behavior depends on trip purpose
 School & work – regular (time of day)
 Recreational & shopping - highly irregular
 Forecast # of trips that produced or attracted by each zone for a “typical” day
 Usually focus on Monday – Friday
 Forecast – function of other variables
 Attraction
 Number and types of retail facilities
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-  Land use
 Production
 Car ownership
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 Income
 Population (employment characteristics)
78
 Trips are estimated by purpose (categories)

 Work
 School
 Shopping
 Social or recreational
 Others (medical)
 Travel behavior of trip-makers depends somewhat on trip purpose
 Work trips
 regular
 Often during peak periods
 Usually same origin/destination
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-  School trips
 Regular
 Same origin/destination
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 Shopping recreational
 Highly variable by origin and destination, number, and time of day
79
 Trips based on “households” rather than individual

 Individual too complex
 Theory assumes households with similar characteristics have similar trip making
characteristics
 However
 Concept of what constitutes a “household” (i.e. 2-parent family, kids, hamster)
has changed dramatically
 Domestic partnerships
 Extended family arrangements
 Single parents
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-  Singles
 roommates
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Explanatory variables in trip generation model
 Socio-economic variables
 Car ownership
 Number of persons
 Age of head of household
 Distance
 Land use variables
 Offices
 Industry
 Commerce
 Shops
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 Public buildings
 Open space
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 Vacant land
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Other Models
 Trip Distribution
 Predicts where trips go from each TAZ
 Determines trips between pairs of zones
 Tij: trips from TAZ i going to TAZ j
 Different methods but gravity model is most popular
 Mode Choice/Split
 In most situations, a traveler has a choice of modes
 Transit, walk, bike, carpool, motorcycle, drive alone
 Mode choice determines # of trips between zones made by auto or other mode, usually
transit
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-
 Trip makers choice of path between origin and destination
 Path: streets selected
623.95  Transit: usually set by route
 Results in estimate of traffic volumes on each roadway in the network
82
Technical infrastructure
 The following structure defines the service flow between demander and Offerer
Demander - 1 Demander - 2 Demander - 3
Desktop, PC, Laptop, Mobile Pagers,

Demande Terminal softphone
rInterface
Database
Service
Provider
Offerer - 1 Offerer - 2 Offerer - 3
AGENT
S
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- Banks Service
Offerer Desktop, PC, Laptop, Mobile
Pagers, Terminal softphone
Interfac
Integrate with other e
providers
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Other issues (weather forecasting,
Routing, Entertainment)
Using
Web
Services
83
Conclusion
 Increasing mobility generates economic development,welfare and social

freedom
 It remove negative effects in terms of congestion, environmental, noise,
energy use, space use, accessiblity and other problems
 Developing this type of service is not only for human mobility and even
for goods to improve the heavy vehicle congenstion in city areas and can
improve the financial growth
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Future Work
 Continuous data updation such as demander

information, offeror information, other
clients
 Make connectivity for different
communication sources (such as mobile,
internet etc.)
 Generating different reports such as daily
profit, daily credits earned by each service
provider and all other transactions
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-  Affiliate with reputed banks to make better
customer payment transaction
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Logistics Technology and Management

Master of Business Administration

Why study Business Logistics?

 Wide career prospect

The process of planning, implementing and controlling the

 Logistics is, in itself, a system

The system approach

 All functions or activities need to be understood in terms of how they

Logistics role in the Economy

 Logistics is an important component of GDP

 Adds value by creating TIME and Place Utility(value)

Logistics role in the Organization

4 P’s of the Marketing Mix

 Products- the set of utilities or characteristics a customer

 Logistics Types of Utility

Logistics allows efficient movement

The Logistics Evolution

 Evolving Integration 1980

Factors Impacting the

 Advances in Computer Technology

Key Logistics Activities

 Customer Service • Parts & Service Support

 Structure of Telecommunications and

Some practical applications of Traffic

Emergency warning system

Satellite navigation Mobile data & Television 18

Some practical applications of Traffic

Intelligent vehicle technologies

 Major urban transport problems in India

Traffic injuries and fatalities

Environmental pollution To reduce congestion, pollution, fuel use

 Traffic Congestion is probably the most Visible,

Automotive Investments in India

Percent distribution of urban trips

 Transportation systems worldwide are undergoing a shift from

 Road pricing: used to cover the various charges

 Curb traffic demand to reduce

 Discouraging Driving: Making journeys less polluting and more efficient

Why Implement Congestion Pricing?

 To boost the environmental performance

Why & Where Road Pricing and

 Traveler response to changes in price of travel changes:

Road Pricing and Congestion Charging:

 Coin machine & attended toll collection: 300 vehicles/hour capacity

RESULTS Some Recent Developments

Approaches for congestion charging

 Cordon entry permit

Some Cost-Effectiveness Matters

For Implementing Road Pricing steps

 Articulate system objectives

 The development of cooperative telematics services increases the value of

‘E’, Logistics and Supply

E-Commerce, Logistics and Supply Chain

Supply Chain: a network of activities that deliver a finished

External Internal External

 The process of planning, implementing, and controlling the

 External suppliers provide the necessary raw materials,

Developing a Supply Base

Criteria for Choosing Suppliers

Size of Supplier Pool: 1 or many per item

One Supplier per Item

Multiple Suppliers per Item