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Logistics Transportation Systems
Logistics
Transportation Systems
MD Sarder
Bowling Green State University,
Bowling Green, OH, USA
Elsevier
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ISBN: 978-0-12-815974-3
Preface xv
Acknowledgments xix
v
vi Contents
2.9 Algorithms 46
2.10 Mathematical tools 47
2.11 Layers of network 48
2.11.1 Physical network 48
2.11.2 Operational network 48
2.11.3 Strategic network 49
2.12 Transportation cost 49
2.12.1 Transportation cost components 50
2.12.2 Transportation cost categories 52
2.12.3 Transportation cost function 52
2.12.4 Factors that influence transportation cost 56
2.13 Network problems 57
2.14 Conclusion 57
References 57
Further reading 58
Appendices 363
Index 419
xv
xvi Preface
MD Sarder
msarder@bgsu.edu
Acknowledgments
xix
Chapter 1
Overview of transportation
logistics
1.1 Introduction: what is transportation logistics?
What is transportation logistics? Broadly, it is the process of obtaining raw
materials, material handling and distributing products from the point of origin
to point of consumption with the help of transportation. Logistics is a subset
and an integral part of supply chain systems. Acquiring and transporting raw
materials and subsystems, inbound and outbound movements within the pro-
duction facilities, storing, loading and unloading, and getting the products to
customers is supply chain. Logistics then can be defined as the processes
involved in moving these materials in the supply chain. Transportation system
and distribution system are part of logistics system. Fig. 1.1 shows the rela-
tionship among all these concepts.
According to the Council of Supply Chain Management Professionals
(CSCMP), logistics management can be defined as “that part of supply chain
management that plans, implements, and controls the efficient, effective for-
ward and reverse flow and storage of goods, services, and related informa-
tion between the point of origin and the point of consumption in order to
meet customers’ requirements.” Logistics management typically includes
inbound and outbound transportation management, fleet management, ware-
housing, materials handling, order fulfillment, network design, inventory
management, supply/demand planning, and management of third-party ser-
vices providers. To varying degrees, logistics also includes sourcing and pro-
curement, production planning and scheduling, packaging and assembly, and
customer service.
The CSCMP defines supply chain management as the planning and man-
agement of all activities involved in sourcing and procurement, conversion,
and all logistics management activities. Importantly, it also includes coordi-
nation and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers. In essence, sup-
ply chain management integrates supply and demand management within
and across companies. It includes all of the logistics management activities
noted above, as well as manufacturing operations, and it drives coordination
FIGURE 1.1 Logistics and transportation systems within supply chain systems.
of processes and activities with and across marketing, sales, product design,
finance, and information technology.
Logistics involves planning, implementing, and controlling of efficient
and effective forward and reverse flow. Logistics also involves storing of
goods from the source of production to the destination of consumption to ful-
fill consumers’ requirements. The popular concept of seven Rs in logistics
refers to getting the right product in the right quantity in the right condition
at the right place at the right time to the right recipient at the right price.
When an order is placed, and a product needs to be delivered from one
place to another, there are four major components involved in the process:
physical flow of the product, information flow related to the process, pro-
cesses involved in the delivery and shipment, and roles and responsibilities
of appropriate personnel. In this book, we will focus on the physical flow of
the product and everything associated with the flow.
In the current state of our global market, logistics managers play a key
role for companies as they bring their merchandise from source to market.
The merchandise may be physical products such as food, medicine, furniture,
and toys or it can be services such as information technology. For many
companies, the transportation of goods from production to end user constitu-
tes up to two thirds of total costs associated with a particular item. This is
because the logistics management of physical products requires integration
of several elements such as planning and implementation, information flow,
material handling, product fabrication, packaging of the final product, stor-
age and inventory control, warehousing, and transporting the final product to
the consumer. Logistics management is a crucial part of supply chain man-
agement as it ensures the efficient and effective movement of goods through
the supply chain. Logistics plays a critical role in determining the overall
Overview of transportation logistics Chapter | 1 3
Table 1.1 shows the distance in which each country has transported goods
through the different modes of transportation in the order of most distance
traveled by roadways to the least distance traveled. As you can see, this data
does not take into account our drastically increasing societies and popula-
tions; however, Table 1.2 accounts for this difference in data. Table 1.2
shows how much the demand for transportation is changing. From this data,
collected by the US Department of Transportation, we can see that over
time, the number of miles traveled will increase. Because of this, different
modes of transportation are more efficient and cost effective.
Table 1.3 shows the Logistics Performance Index rankings for those
countries with the highest rank based on the types of shipments within the
country and internationally in 2018. Each of the “score” columns are on a
scale from one to five, one being the lowest rank and five being the highest.
In order to be assigned a number on the scale, several factors are taken into
account. Some of these factors are quality, competence, frequency, ability of
tracking and arranging the shipments, and time and ease (Logistics
Performance Index, 2019). This concept will also be further discussed in a
later chapter.
There are many accepted definitions of the term logistics, ranging from
simple to complex. For example, the CSCMP defines logistics as the “part of
New Zealand 2018 15 3.88 3.71 3.9 3.43 4.02 3.92 4.26
Belgium 2018 3 4.04 3.66 3.98 3.99 4.13 4.05 4.41
Hong Kong, 2018 12 3.92 3.81 3.97 3.77 3.93 3.92 4.14
China
supply chain management that plans, implements, and controls the efficient
forward and reverses flow and storage of goods, services and related infor-
mation between the point of origin and the point of consumption in order to
meet customer’s requirements” (Council of Supply Chain Management
Professionals, 2011).
It can be inferred from these definitions that logistics refers to getting a
product from point A to B during business operations. What ties together
this network of manufacturers, distributors, retailers, and transportation com-
panies? The entire globe is connected through logistics transportation sys-
tems. Logistics transportation systems are considered all water, air, and land
assets and routes utilized in the movement of cargo or freight across the
globe from points of supply to points of demand. They are the glue that
holds the entire global market together. All of the assets and routes falling
under this broad definition will be discussed in the following text. This
includes all equipment, infrastructure, and links that are incorporated into
logistics transportation systems.
3000 BCE when animals were even introduced for transporting people and
goods. Around 3100 BCE the sail boat was created by the Egyptians and
later wooden ships were used for trading overseas (Lambert, 2018). Over
time, pathways that later became roads were established so that people could
travel from one area to another, and more wealthy people began to travel on
horses or with canvas covered wagons. In the 19th century, railways were
created and helped to transform the history of transportation by increasing
the speed of delivery (Lambert, 2018).
Each of these milestones in the history of transportation has been influ-
enced by the increase of volume from consumers, and recently, technology
has played an important role in what transportation is like today. For exam-
ple, the magnetic train is a high-speed train developed to help compensate
for issues regarding congestion in other transportation modes. The magnetic
train is faster than a conventional train because the train creates a magnetic
force with the track so that it can essentially levitate above the track, remov-
ing the friction found on a conventional train track (Bonsor, 2018). The tube
train being built in California is similar to a magnetic train; however, it will
instead be propelled by air instead of magnets (Lewis, 2015). Recent tech-
nology has also helped to create drone deliveries that are beginning to be
used by well-known companies such as Walmart, Amazon, and even some
pizza companies. (Fig. 1.3).
When it comes to moving goods from one place to another, there are var-
ious delivery options: one can transport products by airplane, train, truck, or
ship. One can also transport them by bicycle, horse, or donkey, or even walk
them to a destination. All of these modal options come with different
Overview of transportation logistics Chapter | 1 9
FIGURE 1.3 (A) Modern magnetic rail in China; (B) Driverless car in the United States.
the freight while it is still in transit on the road, on water, or in the air so
it does not have to spend much time in customs, which reduces costs.
2. Integrating the supply chain: As logistics management is a vital part of
the supply chain, for uninterrupted flow of goods and information,
requires logistics internal process integration between its layers as well as
alignment between various functions along the supply chain are required.
Layers of transportation management include intermodal, equipment,
infrastructure, networks, modes, and basics. Transportation managers find
the best ways to align the strengths and weaknesses of these various
layers to provide high-quality, low-cost service to customers. Supply
chain functions include purchasing, logistics, production control, research
and development, marketing and sales, and distribution.
3. Substituting information for inventory: In order to construct the logistics
network, substituting information is crucial and requires taking key steps.
The first step is to locate in the right locations/countries. Once all geo-
graphical locations are identified, then analyze the forward and reverse
chains of supply and compare which locations that makes the logistics
function efficient and costeffective. The next step is to develop an
export import strategy. Estimate the volume of the product being
exported and imported, how many freights are needed, and then select
the location at which to place the inventory for strategic advantage. Step
three is selecting the warehouse location. Evaluate the number of ware-
houses needed, determine the distance of the warehouses from markets,
and then build the warehouses around the world in an efficient way to
minimize cost and delivery time. Step four is to selecting the mix of
transportation modes and carriers to supply the deliveries in an efficient
manner. Selecting the right number of partners also plays a significant
role in constructing the logistics network. This requires developing robust
information systems to quickly track accurate demand information and
locate inventory using GPS systems and barcoding technology.
4. Reducing supply chain partners to an effective minimum number: More
partners in the system makes it difficult and expensive to manage the
supply chain. Fewer partners in the system reduces cycle time, opera-
tional costs, and inventory-holding costs.
5. Pooling risks: Both manufacturers and suppliers should stock the com-
mon inventory components associated with the broad family of products
in a centralized warehouse to avoid storage cost and stock outs risk. This
strategy is especially helpful when high variability in demand is associ-
ated with a product.
CONSTRUCTIVE TREATMENT
When a child shows he has not been given careful teaching relative
to sex hygiene, go to his mother and advise her to take the child to a
physician. Explain the physical as well as the moral and mental help
it may be to the child to have one of two very slight operations
performed, after which, with proper diet and bathing, the boy may
easily forget his wrong habits.
COMMENTS
Miss Vane saw a note fall upon Mary Pratt’s desk. She said,
“Mary, bring that note to me.”
The child, she knew had not yet read the note. Greatly
embarrassed, Mary looked questioningly at Clyde Mitchel before
starting toward Miss Vane.
Contrary to the courtesy which teachers Improper Notes
admonish pupils to show, Miss Vane stood
up, opened the note and perused it in the presence of the school.
While she was looking at the note, Clyde Mitchel buried his scarlet
face in his book.
“You wrote this note, didn’t you, Clyde?” asked Miss Vane.
Clyde only nodded “Yes,” and burrowed even deeper into his book.
“This is a shameful note,” said Miss Vane. “It contains words that
no child should ever write or speak. You may stay after school,
Clyde.”
The boys waited at the second corner from the school house for
Clyde after school.
In about ten minutes Clyde came running toward them.
“What did she do, Clyde?” they asked.
“Aw, nothing; she just preached a little and gave me a few licks
that wouldn’t hurt a baby.”
“What was in the note, anyway?”
He told them exactly what was in the note, and a loud “Hurray!”
went up from the group of listeners. The subject of conversation
among these boys as they went on down the street was as full of
unclean words and suggestions as the worst boys in the group could
think up.
CONSTRUCTIVE TREATMENT
If you can not deal with sex subjects privately, with pupils in the
lower grades, do not deal with them at all. Miss Vane made a mistake
in reading or referring to the note in the presence of others. In her
efforts to suppress such foul communications she occasioned a talk
upon the unnamable topics by all of her own room and many in other
rooms as well.
COMMENTS
CONSTRUCTIVE TREATMENT
Miss Terman should have drawn Pearl into the games of the other
girls early in the year. She should have said to the leader among the
girls, in private. “You have it in your hands to make a classmate
happy or miserable. You, yourself, will enjoy school better if no girl is
made sad and lonely. I know that the other girls will follow your lead
and, therefore, I desire that you invite Pearl Goodwin into your
school games and give her an opportunity to know and like good
company.”
COMMENTS
CONSTRUCTIVE TREATMENT
COMMENTS
Miss Fanson was a high school teacher who was justly admired by
the girls under her care. She had talked to the girls about the
deference and homage which they should show to their parents in
social matters. Alice Grant believed that Miss Fanson was exactly
right, hence was willing to act upon her teacher’s advice.
Since she had entered high school, boys had suddenly become very
interesting to Alice. She blushed one afternoon as she plucked up her
courage to reveal certain developments to her mother.
“Mother, the Freshmen are going to give a party, and a boy in my
German class has asked me to go. May I?” Her voice affected
indifference.
But Mrs. Grant knew her young daughter Retaining
and saw through that coolness. Her Alice Control
was excited and flushed and happy over a boy! And she stared
blankly for a moment as the realization forced its way. Then a
tempestuous refusal from a heart that resented her little girl’s
growing up sprang swiftly to her lips, but she kept back the words. It
did, indeed, hurt to have Alice begin to be a young lady, but could
even she, the most adoring of mothers, restrain time and the youth
that was blossoming in her child?
“I’ll have to think it over, Alice. I’ll tell you in the morning.”
And Alice went to her studying, confident that, whatever her
mother decided, she would be just and allow only big reasons to
weigh with her.
Mrs. Grant thought it over and that night talked it over with her
husband.
“She’s absurdly young—only fifteen,” he objected.
“Yes, but absurdly natural, too, and strong in her desires. I fear, if I
refuse, it may only surround boys with a mysterious glamour for her,
and she might then be tempted to associate with them in spite of me,
and any secrecy or deceit just now is dangerous. And you know our
Alice is growing pretty.”
Mr. Grant regretted and bemoaned the loss of his little girl, but
agreed. “But who is this boy?” he demanded. “Do you know him?”
“No. But I’m going to know all her friends from now on.”
And next morning, when Alice, pink-cheeked and eager-eyed,
sought her mother’s decision, she welcomed the “Yes” with a little
squeal of delight.
“But I’ve been thinking, Alice,” her mother added, “that I’d like to
know the boys and girls you’re going with. Wouldn’t you like to ask
some of them over here some evening before the party?”
“Would I? Well, rather! Mother, you’re a dear.”
“And what about a dress. I suppose you’d like a new one?” Further
question was stifled by an enthusiastic hug.
So they talked of the party and the dress, and then it was not far to
“the boys” and Alice’s new feeling for them. And Mrs. Grant felt that
the sweet intimacy she was entering with this new daughter more
than compensated for the loss of the little girl, who had suddenly
become a young woman.
When Alice returned from the party her mother showed interest in
each detail that her daughter related. She remarked: “You must have
had loads of fun—what did you have to eat? What did you especially
like in the conduct of your classmates?” It is while such concrete
subjects are being discussed that much guidance can be given the
daughter in her formation of opinions as to what is proper or
improper conduct. A teacher who brings about such intimacy as this
incident illustrates has done much for both mother and daughter.
ILLUSTRATION 2 (HIGH SCHOOL)
CONSTRUCTIVE TREATMENT
COMMENTS
The amative impulses of youth are not vicious, but need direction
and control. Self-control, above all else, is to be taught, and the
teaching must often be reinforced by wise, friendly restraint. Frank
friendships are to be encouraged; sickly, silly sentimentality laughed
out of court. If a teacher, instead of standing ready to give this help
and guidance when it is needed, encourages a sentimental devotion,
as Miss Kingsley did, the most fundamental safeguard of youth is
sacrificed—the ideal of controlled emotion, of a conscious saving of a
sacred experience for the future. A large range of interests, a healthy
balance of activities, and a wholesome unconsciousness of self, tend
to keep young people simple and child-like in their emotional lives.
Above all, no teacher has any business to give the impression that he
alone appreciates youth and its promise, or to make his relations
with impressionable boys and girls unduly personal.
Mr. Bradley was principal for two years of the Newcastle school.
He revealed his characteristics as a teacher so fully that we find in
him an example of the type not to be recommended and yet one that
is very instructive for students of school discipline.
In stature he was slightly below medium height. He came from
rural ancestry and was fairly well equipped as to physique. He had
black hair and eyes, somewhat mobile features and a wandering
gaze. His movements could hardly be called quick, but they were
prompt and without distinct mannerisms.
He had a most gracious manner when meeting people on the street
or in their homes. He spoke kindly to everyone and had the
reputation among the townspeople of being a royal, good fellow.
Even his pupils could not deny that he treated them very courteously
and jovially outside of school hours.
Despite all this he used essentially the method of the hen-pecking
incompetent when handling disciplinary matters in school. The
moment he entered the school precincts he was a different man. His
countenance then betrayed the sternness of the schoolmaster who
dwelt within and apart from the polite gentleman he seemed to be
when outside the school-room. His eyebrows gathered and his
muscles reverberated with the sense of authority that flooded his
whole nature.
His eye was on the lookout for misdemeanors and if a pupil made a
misstep in the realm where Mr. Bradley thought he had jurisdiction,
that harsh, strident voice, with but the slightest trace of fellow-
feeling, spoke the word of correction or announced an impending
penalty.
In the school-room it was his delight to slip up behind an offender
and pluck him by the ear as a reminder of duty. Being the only
instructor who indulged in this practice it soon came to be one of the
most odious signals of his presence in the room. When absorbed in
his subject he made instruction interesting; his pupils could not fail
to learn if they did not venture to vary the program by misconduct.
However, their recollection of his general attitude toward them, the
ease with which they could upset his plans by introducing a few
school pranks, the certainty that he would lose his temper on slight
provocation, always hung as a barrage screen between them and
undivided concentration on the subject-matter of their lessons.
Mr. Bradley made it a practice to watch for accumulating offenses.
He felt incompetent to handle minor evils, but attempted to squelch
a wayward pupil by reciting a list of grievances and applying
penalties for the same. He had a good memory for facts of this sort.
He could shake his finger in the face of a boy or girl and say, “Didn’t
you pull Esther’s hair yesterday ... trip up Jimmie on the way to class
in geometry and purposely spill the crayons when you were at the
board? Now, I have had enough of this. I want to know what you are
going to do about it.”
This gentleman could not catch the drift of things. Early in his first
year Mr. Bradley’s attention rested upon Ted. Ted was a short,
heavy-set chap of some fourteen years, incapable of any
revolutionary propensities, but able to interest himself with a variety
of aggravating tricks. His pranks were individually almost too small
to command severe penalties, but they were too annoying to escape
the principal’s eye.
Unfortunately, Mr. Bradley hit upon the lash as a cure for Ted.
Selecting a more pronounced misdemeanor as an opportunity for
settling accounts with the troublesome pupil, he gave him a sound
whipping.
There was some ground for the general protest that arose from the
high school. Ted was a favorite with every one. The crude principal
had struck one but he had wounded all. His untactfulness had made
him abhorrent to all, even to those who had not hitherto drawn upon
themselves his specific disapproval and useless punishments. Mr.
Bradley, perhaps, never knew that he had undermined his own
usefulness as much by this treatment of a school favorite as by any
single deed that transpired during his whole stay in Newcastle.
He had his own method of handling the problem of whispering. He
made it a rule that every pupil in high school must answer at roll call
at the end of the day on the matter of whispering. If a pupil had
whispered he must answer “Present,” and specify the number of
times during the day he had whispered. If he had a clear record on