课程《供应链管理》ManagingTransportationinaSupplyChain课件

1、课程供应链管理ManagingTransportationinaSupplyChain课件课程供应链管理ManagingTransportatioOutlineFactors affecting transportation decisionKey modes of transport and major issuesTransportation System DesignTradeoffs in transportation designTransportation and inventory: Choice of modeTransportation and inventory: Cons

2、olidationTransportation and service: Transit points at MerloniTailored TransportationRouting and scheduling in transportation2OutlineFactors affecting transFactors Affecting Carrier DecisionsVehicle-related cost: lease or purchase the vehiclesFixed operating cost: terminals, airport gates, and labor

3、Trip-related cost: length, durationQuantity related cost: loading, unloading, proportion of fuelOverhead cost: planning, scheduling, IT investments本作品轉載自Microsoft Office 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條合理使用。本作品轉載自Microsoft Office 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條合理使用。本作品轉載自Microsoft O

4、ffice 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條合理使用。3Factors Affecting Carrier DeciFactors Affecting Shippers DecisionsTransportation costInventory costFacility costProcessing costService level cost: delivery commitment本作品轉載自Microsoft Office 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條合理使用。本作品轉載自Microsof

5、t Office 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條合理使用。本作品轉載自Microsoft Office 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條合理使用。4Factors Affecting Shippers DecTransportation ModesTrucksTLLTLRailCarloadAirPackage CarriersWaterPipelineIntermodal本作品轉載自Microsoft Office 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條

6、合理使用。本作品轉載自Microsoft Office 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條合理使用。5Transportation ModesTrucks本作品轉Average revenue per ton mile (1998) = 9.13 centsAverage haul = 289 milesAverage Capacity = 42,000 - 50,000 lb.Low fixed and variable costsMajor IssuesUtilization: economies of scaleConsistent serv

7、iceBackhaulsTruckload (TL)本作品轉載自Microsoft Office 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條合理使用。6Average revenue per ton mile (Less Than Truckload (LTL)Average revenue per ton-mile (1998) = 26.12 centsAverage haul = 629 milesHigher fixed costs (terminals) and low variable costsMajor IssuesLocation of

8、consolidation facilitiesUtilization (load assignment)scheduling and routing of pickup and deliveryCustomer service本作品轉載自Microsoft Office 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條合理使用。本作品轉載自Microsoft Office 2007多媒體藝廊，依據Microsoft服務合約及著作權法第46、52、65條合理使用。本作品轉載自Microsoft Office 2007多媒體藝廊，依據Microsoft服務合約及著

9、作權法第46、52、65條合理使用。7Less Than Truckload (LTL)AveraAverage revenue / ton-mile (1998) = 2.40 centsAverage haul = 722 milesAverage load = 80 tonsKey IssuesScheduling to minimize delays / improve serviceOff track delays (at pick up and delivery end) Yard operationsVariability of delivery timesRail8Averag

10、e revenue / ton-mile (19Average revenue / ton-mile (1998) = 56.25 centsAverage haul = 1260 milesKey IssuesLocation/Number of hubsLocation of fleet bases / crew basesSchedule optimizationFleet assignmentMaintenance scheduleCrew schedulingYield management (price management)Air9Average revenue / ton-mi

11、le (19Expensive but offer rapid, reliable serviceValue-added services:Order trackingOne-stop shippingKey factors:Consolidation of shipmentsLocation and capacity of transfer pointsInformation capabilityPackage Carriers10Expensive but offer rapid, relRevenue/Ton-Mile (1998) = 0.73 centsAverage length

12、of haul:Rivers/Canals 481Great lakes 509Coastwise 1653Issue:Delays at ports, customsManagement of containers usedWater11Revenue/Ton-Mile (1998) = 0.73Transport petroleum and related products, natural gasRevenue/Ton-Mile (1998): 1.37Average length of haulCrude 761Products 394Stable and large flow app

13、liedPipeline 12Transport petroleum and relateUse more than one mode of transportation to move a shipment to destinationExamples: piggyback, fishyback, birdybackKey issues:Exchange of information to facilitate shipment transfer between different modesIntermodal 13Use more than one mode of tranRepleni

14、shment size close to TLDesign Options for Transportation Network- Direct Shipment Network14Replenishment size close to TLEliminate warehouse and consolidate the shipments from suppliers or to customersDesign Options for Transportation Network- Direct Shipping with Mike Runs15Eliminate warehouse and

15、consolReduce inbound costsCross-duckingDCDesign Options for Transportation Network- Via Central Distribution Center16Reduce inbound costsDCDesign OConsolidate local small shipmentsDCDesign Options for Transportation Network- Via Distribution Center Using Mike Runs17Consolidate local small shipmeCons

16、ProsHighest coordination complexityBest matches needs of individual product and storeTailored networkFurther increase in coordination complexityLower outbound cost for small lotsVia DC using milk runIncreased coordination complexityVery low inventoryLower cost through consolidationVia central DC wit

17、h cross-dockIncreased inventory costIncreased handling at DCLower inbound transportation costVia central DC with inventory storageIncreased coordination complexityLower cost for small lotsLower inventoriesDirect shipping with milk runLarge shipping lot sizeSimple to coordinateDirect shippingPros and

18、 Cons of Different Transportation Networks18ConsProsHighest coordination cTransportation and inventory tradeoffChoice of transportation modesInventory aggregationTransportation cost and customer responsiveness trade-offTrade-Offs in Transportation Design19Transportation and inventory t621435Transpor

19、tation time 156432Transportation cost621345In-transit inventory621345Safety inventory621345Lot sizeWaterAirPackageLTLTLRailImpact of Transportation Modes20621435Transportation time 1564Annual demand = 120,000 motorsCost per motor = $120Each motor weighs 10 poundsCurrent order size = 3,000 motorsSafe

20、ty stock carried = 50% of demand during delivery lead timeHolding cost = 25%, annual cost of H = $120 0.25 = $30Choice of Mode: Eastern Electric Corporation21Annual demand = 120,000 motors3.00400Golden Freightways (new)4.00250 400Golden Freightways6.00150 250Golden Freightways8.0050 150Golden Freigh

21、tways7.50100 +Northeast Trucking6.50200 +AM railroadShipping Cost ($/cwt.)Range of Quantity Shipped (cwt.)Carrier Eastern Electric Corporation223.00400Golden Freightways (newMinimum shipment 20,000 lb. or 2,000 motors. Replenishment lead time L = 5 + 1 = 6 days. Q = 2,000 motorsCycle inventory = Q/2

22、 = 2,000/2 = 1,000 Safety inventory = L/2 = (6/2)(120,000/365) = 986In-transit inventory = 120,000 (5/365) = 1,644Total average inventory = 1,000 + 986 + 1,644 = 3,630Annual holding cost using AM Rail = 3,630 30 = $108,900Annual transportation cost = 120,000 0.65 = $78,000Total annual cost for inven

23、tory and transportation using AM Rail is $186,900Example: AM Rail Proposal23Minimum shipment 20,000 lb. orEastern Electric Corporation24Eastern Electric Corporation26As a result of physical aggregationInventory costs decreaseInbound transportation cost decreasesOutbound transportation cost increases

24、Applications:Inventory and facility costs are higherProducts with large value-to-weight ratio or high demand uncertainty or customer orders are largerPhysical Inventory Aggregation: Inventory vs. Transportation cost25As a result of physical aggregHighval (worth $200, .1 lbs/unit) demand in each of 2

25、4 territories, H = 2, H = 5Lowval (worth $30/unit, 0.04 lbs/unit) demand in each territory, L = 20, L = 5CSL in each territory is 0.997 for each product. Holding cost is 25%.UPS rate: $0.66 + 0.26x (every 4 weeks for replenishments)Inventory Aggregation at HighMed26Highval (worth $200, .1 lbs/unOpti

26、on A: keep the current but start replenishing inventory once a weekOption B: Eliminate inventories in the territories, aggregate all inventories in a finished goods warehouse at Madison, and replenish the warehouse once a weekFedEx rate: $5.53 + 0.53x (one-week lead time to replenish goods at Madiso

27、n. An average customer order is for 1 unit of HighVal and 10 units of LowVal)Inventory Aggregation at HighMed27Option A: keep the current butCurrent situation:Replenishment lead time L = 1 weekReorder interval T = 4 weeks CSL = 0.997HighVal inventory costs at each territory: Average lot size QH = 4

28、2 = 8Safety stock = F-1(CSL) T+L = F-1(0.997) = 30.7 Total inventory = 8 / 2 + 30. 7 = 34.7For 24 territories, HighVal invetory = 34.7 24 = 832.8LowVal inventory costs at each territory: Average lot size QL = 4 20 = 80Safety stock = F-1(CSL) T+L = F-1(0.997) = 30.7 Total inventory = 80 / 2 + 30. 7 =

29、 70.7For 24 territories, HighVal invetory = 70.7 24 = 1696.8Inventory Aggregation at HighMed28Current situation:Inventory AgCurrent situation:Annual inventory holding cost = (832.8 $200 + 1696.8 $30 ) 0.25 = $54,366Transportation cost:Average weight of each replenishment order = 0.1 QH + 0.04QL = 0.

30、1 8 + 0.04 80 = 4 lbsShipping cost per replenishment order $0.66 + $0.26 4 = $1.7Annual transportation cost for 24 territories = $1.7 13 24 = $530.4Total cost = $54,366 + $530.4 = $54,896.4Inventory Aggregation at HighMed29Current situation:Inventory Ag$22,938$30,943$54,896Total annual cost$14,464$1

31、,148$530Annual transportation cost0.5 lb.1 lb.4 lbsShipment weight1 HighVal + 10 LowVal2 HighVal + 20 LowVal8 HighVal + 80 LowValShipment size Customer orderReplenishment Replenishment Shipment type$8,474$29,795$54,366Annual inventory cost335.2 units706 units1,696.8 unitsLowVal inventory95.2 units46

32、6 units736.8 unitsLowVal safety inventory240 units240 units960 unitsLowVal cycle inventory119.2 units490 units832.8 unitsHighVal inventory95.2 units466 units736.8 unitsHighVal safety inventory24 units24 units96 unitsHighVal cycle inventory1 week1 week4 weeksReorder interval12424Number of stocking lo

33、cationsOption BOption ACurrent ScenarioInventory Aggregation at HighMed30$22,938$30,943$54,896Total annIf shipment size to customer is 0.5H + 5L, total cost of option 2 increases to $36,729. Average weight of each customer order = 0.10.5 + 0.045 = 0.25 lbsShipping cost per customer order = $5.53 + 0

34、.530.25 = $5.66 Number of customer orders per territory per week = 4Total customer order per year = 42452 = 4,992Annual transportation cost = 4,992 5.66 = $28,255Total annual cost = $8,474 + $28,255 = $36,729Inventory Aggregation at HighMed31If shipment size to customer iInventory aggregation decisi

35、on must account for inventory and transportation costs. Inventory aggregation decreases supply chain costs if the product has a high value to weight ratio, high demand uncertainty, customer orders are large. If a product has a low value to weight, low demand uncertainty, or customer orders are small

36、, inventory aggregation may increase SC costs.Key Points32Inventory aggregation decisionHigh responsivenesshigh trans costExample: Alloy steelShip using an LTL with charge 100 + 0.01x, charge $10 per customer deliveryCurrently ship on the day that order received, allow two days in transit, the respo

37、nse time is 2 daysTrade-off between Transportation Cost and Customer Responsiveness33High responsivenesshigh trans18,44219,60324,10023,37020,6332,15839,171Week 225,3778,38120,26326,19211,31617,47019,970Week 1Day 7Day 6Day 5Day 4Day 3Day 2Day 1Daily demand at Alloy Steel3418,44219,60324,10023,37020,6

38、33$3264.46$3464.46$4164.46$480.4538045$480.4538045$284.42184421844214-0-0$296.03196031960313$781.0368103$574.7047470$341.00241002410012-0-0$333.70233702337011-0$327.9122791$306.33206332063310$767.0666706-0$121.58215821589-0$754.4864548$491.7139171391718-0-0$353.7725377253777$648.3654836$386.4428644$

39、183.81838183816-0-0$302.6320263202635-0$475.0837508$361.9226192261924$587.5648756-0$213.1611316113163-0$474.4037440$274.717470174702-0-0$299.719970199701Cost Q shippedCost Q shippedCost Q shippedDemandDayResponse Four dayResponse Three dayResponse Two dayQuantity Shipped and Transportation Cost35$32

40、64.46$3464.46$4164.46$480.4Factors affecting tailoringCustomer distance and densityCustomer sizeProduct demand and valueTailored Transportation36Factors affecting tailoringTaiLTL or package carrierLTL carrierCrossdock with milk runsMedium distancePackage carrierThird-party milk run or LTL carrierLow

41、 densityLTL or package carrierThird-party milk runMedium densityCrossdock with milk runs (public fleet)Private fleet with milk runsHigh densityLong distanceShort distanceTailored Transportation-by Customer Density and Distance37LTL or package carrierLTL carrLarge customer: TL carrierSmaller customer

42、: LTL carrier or milk runDepends on distance and number of deliveriesVisit larger customers with higher frequency than small customersTailored Transportation-by Size of Customer38Large customer: TL carrierTailAggregate only safety stock. Use inexpensive mode of transportation for replenishment cycle

43、 inventoryAggregate all inventories. If needed, use mode of transportation for filling customer ordersLow DemandDisaggregate all inventories and use inexpensive mode for replenishment inventoryDisaggregate cycle inventory and aggregate safety inventory. Inexpensive mode for replenishing cycle invent

44、ory and fast mode for safety stockHigh DemandLow ValueHigh ValueProduct TypeTailored Transportation-by Product Demand and Value39Aggregate only safety stock. UTwo approaches:Saving Matrix MethodGeneralized Assignment MethodRouting and Scheduling in Transportation40Two approaches:Routing and SchVehic

45、le Routing41Vehicle Routing43Step 1: identify the distance matrixStep 2: identify the saving matrixS (x, y) = Dist (DC, x) + Dist (DC, y) Dist (x, y)Step 3: assign customers to vehicles or routesInitially, each customer assigned to a separate routeTwo routes combined into a feasible route if the tot

46、al deliveries across both routes dont exceed the vehicles capacityCombine routes with the highest savings into a new feasible route.The procedure continues until no more combinations are feasibleStep 4: sequence customers within routesSequence customer visits to minimize the distance each vehicle tr

47、avelsProcedures of Saving Matrix Method42Step 1: identify the distance Vehicle Routing43Vehicle Routing45Vehicle Routing44Vehicle Routing46Route Sequencing ProcedureFarthest insert: given a trip for each remaining customer, find the min increase in length for this customer to be inserted from all th

48、e potential points in the trips. Choose to insert the customer with the largest min increase to form a new trip. Continue until all remaining customers are included. Nearest insert: given a trip for each remaining customer, find the min increase in length for this customer to be inserted from all the potential points in the trips. Choose to insert the customer with the smallest min increase to form a new trip. Continue until all remaining customers are included. Nearest neighbor: start at DC,