Authors: Scott E. Grasman
Addresses: Department of Engineering Management and Systems Engineering, University of Missouri-Rolla, 219 EMSE, 1870 Miner Circle, Rolla, MO 65409, USA
Abstract: By adopting multimodal logistics, global firms can significantly reduce lead time and inventory carrying costs, which may constitute major improvements in both profit and customer service. This paper presents dynamic programming formulations of multimodal logistics systems, which result in deterministic acyclic networks that may be solved using Dijkstra|s algorithm. Using these models one can find both a least cost route and a least lead time route subjected to lead time and total cost, respectively. By combining these models, they may be used to make strategic decisions and to allow for system control in response to disruption. The presented model has both the analytical foundation and flexibility for application to a number of situations.
Keywords: global logistics; multimodal logistics; supply chain management; SCM; multimodal routing; globalisation; lead time reduction; inventory reduction; multimodal transportation networks; dynamic programming; cost reduction.
International Journal of Logistics Systems and Management, 2006 Vol.2 No.1, pp.96 - 106
Published online: 23 Nov 2005 *Full-text access for editors Access for subscribers Purchase this article Comment on this article