Dispatching Shipments at Minimal Cost with Multiple Mode Alternatives
NAVAL POSTGRADUATE SCHOOL MONTEREY CA
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Numerous organizations are involved in distributing goods and materials. When shipping alternatives exist, the selection of the appropriate shipping alternative mode for each shipment may result in significant cost savings. This paper describes a highly flexible dispatching system that selects the shipping mode to be used for each shipment while minimizing the overall shipping costs. Multiple shipping modes must be considered when one faces economies of scale in shipping. On the one hand, combining shipments on a truck route usually results in reduced cost per shipment, but on the other hand, a common carrier alternative almost always exists. Therefore, nearly every major shipper faces shipping mode alternatives.
- Economics and Cost Analysis
- Surface Transportation and Equipment