Determining Transportation Mode Choice To Minimize Distribution Cost: Direct Shipping, Transit Point And 2-Routing
نویسندگان
چکیده
We consider a problem in which a supplier must determine the transportation mode for product deliveries to satisfy demand from a set of retailers. Based on combinations of four possible transportation modes, we consider seven different distribution policies on set of instances derived from data from an Italian company. For three demand scenarios (low, moderate, high), we compare the performance of the various distribution policies. Based on demand characteristics, we characterize the optimal distribution policies. We demonstrate the increase in cost resulting from restricting mode choice to a subset of the possibilities.
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