Transportation System

Modes of Transportation
Air Water Roadways Railways Pipeline

Inter-modal / Multi-modal Transportation

RAIL ROADS WATER AIR

Piggyback

Fishyback

Tranship

Airtruck

Characteristics / Factors
Cost Damage in Transit Speed Reliability/ Timely Delivery Coverage Bulk shipment Value Added Services Frequency Availability

Transportation Decision
Economic Factors
Distance Volume Density Stowability Handling Liability

Shippers Factors
cost of transportation cost of inventory holding Facility cost Customer services mission

Carriers Factors
Cost of vehicle procurement Operational Cost
Fixed Variable

Value added services cost

Alternative Pricing Strategies

Cost of service strategy Value of service strategy Combination strategy

Logistics System Analysis and Design

Inventory Value
Input Needs Shipment Input s Prod. Schedul e Inventor y magmt Output Inventor y Transpor t Custome r Protectiv e Packagin g Order Processin g

Sourc e Study

Order Placement

Packagin g

Quality

Negot iation

Mat. Handlin g

Storag e

Dist. & Warehous e

Cash

Information

Procurement Function

Production Function

Ph. Distribution Function