Operations Management - Transportation Models - Presentation, Study notes of Managerial Economics

Download Operations Management - Transportation Models - Presentation and more Study notes Managerial Economics in PDF only on Docsity!

Transportation Models

Logistics Management

• (^) Find the best way to store, handle and move products so that they are available to customers in the right amount, at the right time, and in the right place
• (^) Logistics affects
  • (^) customer satisfaction
  • (^) company costs (15% of the product’s price)

Nature of Logistics

• Material flows one way

• Money flows the other way

• Information flows both ways

Major Logistics Functions

The major logistics functions include:

• (^) Order processing
• (^) Inventory management
• (^) Warehousing
• (^) Transportation

Why Transportation Modeling?

• (^) To forecast requirements for transportation vehicles and manpower.
• (^) To meet all inter- and intra-national regulations for transport of goods.
• (^) To adhere to delivery schedules and maximum reduction of lead time.

Basis of Transportation Modeling

• (^) Cost efficiency
• (^) Origin and destination
• (^) Time optimization
• (^) Type of product
• (^) Perishability of product
• (^) Convenience

Types of models

• (^) Single mode transport
• (^) Piggyback (Road-rail-road)
• (^) Fishy back (Road-ship-road)
• (^) Trans-ship (Change of vessel in mid-sea)

Factors to be considered

• (^) Energy efficiency and conservation
• (^) Traffic congestion relief
• (^) Maximum reduction of lead time
• (^) Economies of scale
• (^) Flexibility of the model
• (^) Quality preservation of vulnerable goods

Advantages

• (^) Reduction in pollution by minimizing emissions of carbon dioxide and pollutants.
• (^) Usage of environment friendly technologies such as electric & hybrid cars, bio-diesel etc
• (^) Reduction in number of vehicles, thus reducing congestion.
• (^) Improved accessibility.
• (^) Lower transportation costs.
• (^) Easier transportation management
• (^) Reduction of accidents and loss of lives

Interconnectedness

• (^) From other parts of Asia to India:
  • road for short cross border distances. However this is difficult as India is surrounded by mountain ranges on most northern parts, and sea on the southern parts. Very few gaps allow road/ rail cross country transport.
  • fishy back (road-sea-road). For larger distances so that delivery can be made on ports closest to final destination and then transport by trucks.
  • air for long distances and sensitive & non bulky items can also be useful for stringent delivery schedules.