Title: Performance modelling and analysis of transshipment terminals in the parcel delivery industry

Authors: Douglas McWilliams

Addresses: College of Business, Jackson State University, 1400 Lynch Street, Jackson, MS 39217, USA

Abstract: A transshipment terminal typically used in the parcel delivery industry is modelled using fluid approximation. The objective was to gain detail insight into the behaviour of parcel flows within such terminals during transfer operations. A transshipment terminal is composed of many design-dependent and operational-dependent parameters. The analysis shows that the buffer capacity between stations impacts parcel flow congestion and has a significant impact on the operating efficiencies of transfer operations. The analysis shows that the trailer replacement times at the receiving docks and shipping docks impact flow congestion and thus also has a significant impact on the operating efficiency. With the information gained from this study, transshipment terminals can be properly designed to ensure high operating performance.

Keywords: parcel delivery industry; fluid approximation; transshipment terminals; flow maximisation; performance modelling; performance analysis; modelling; parcel flows; transfer operations; buffer capacity; flow congestion; operating efficiency; trailer replacement times.

DOI: 10.1504/IJISE.2014.060656

International Journal of Industrial and Systems Engineering, 2014 Vol.16 No.4, pp.493 - 522

Published online: 07 Jun 2014 *

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