• Title/Summary/Keyword: transportation cost reduction

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Modeling and Analysis of Consolidated Transportation Between Industrial Complexes (산업단지간 공동수송모형과 효과분석)

  • Rim, Suk-Chul;Kim, Sung-Bong;Kim, Nae-Heon
    • Journal of Korean Institute of Industrial Engineers
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    • v.27 no.2
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    • pp.150-157
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    • 2001
  • Since the transportation cost takes two thirds of the logistics cost of Korean firms, significant reduction of business logistics cost can hardly be achieved without effective reduction of the transportation cost. Although consolidated transportation has been regarded as the most promising strategy for reducing the transportation cost, it has not been successful in practice. In this paper, we propose a consolidated transportation model for firms located in industrial complexes, present a heuristic algorithm to operate the system, and analyze the expected cost reduction.

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Simulation Study of Consolidated Transportation (공동수송의 시뮬레이션 연구)

  • 이장룡;변의석
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.26 no.4
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    • pp.56-62
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    • 2003
  • Recently, in order to stay at predominance in the global infinity competition, most of companies have been reducing the cost in many fields of industry First of all, the reduction of the logistics cost have been recognized greatly as the company value rises. But, the current situation of domestic logistics cost is very weak compared with Japan, U.S.A., etc. A rate of logistics cost out of GDP is still high compared with the competitors. The reduction of the transportation cost from overall logistics cost is most urgent subject. One of the methods to make a domestic transportation system efficient is the consolidation. In this paper. we try to compare the consolidated transportation model for a cost reduction with individual case. We also analyze the efficiency of consolidated transportation using simulation program with Arena of System Modeling Company.

A Study on Export and Import Logistics Business Model for Transportation Cost Reduction (물류비 절감을 위한 수출입물류 Business Model 연구)

  • Kim, Tae-Hun;Jang, Jung-Hwan;Choi, Yoon-Jeong;Lee, Chang-Ho
    • Journal of the Korea Safety Management & Science
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    • v.15 no.1
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    • pp.177-182
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    • 2013
  • More and more medium and small enterprises do business across the world according to generalization of online shopping mall such as eBay and Amazon. But high export and import transportation cost make weak the price competitive power of medium and small enterprises products. Then this paper deals with the development of new business model which can reduce the transportation cost for global logistics through efficiently overcoming the constraints as length, size, and weight of product. We explain this model with application for company which export the automobile parts. We can expect the transportation cost reduction by 50%.

The Analysis of Idle Freight Cars in Railway Transportation (철도화차의 공차운행 분석)

  • Kim, Kyoung-Tae;Kwon, Yong-Jang;Kim, Young-Joo
    • Proceedings of the KSR Conference
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    • 2010.06a
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    • pp.1542-1548
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    • 2010
  • Transportation cost takes a major portion on logistics cost. The reduction of transportation cost is a key issue to achieve national competitiveness and logistics cost reduction. And railway must play a important role to shift from road freight transport to environment-friendly transport. There are many idle freight cars in railway freight transportation and they give rise to inefficient operation of freight car. It is well known that the main reason of idle freight cars is unbalanced demand according to direction. In this study, we analysed the current status on idle freight cars in railway at the level of daily data. This results help follow-up research to cut down idle freight cars in railway.

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Performances of Heuristic Algorithms for Consolidated Transportation with Weight and Volume Constraints

  • Rim, Suk-Chul;Kim, Nae-Heon;Youngjin Yoo
    • Proceedings of the Korea Society for Simulation Conference
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    • 2001.10a
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    • pp.63-67
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    • 2001
  • Since the transportation cost takes about two thirds of the logistics cost of Korean firms, significant reduction of business logistics cost can hardly be achieved without effectively reducing the transportation cost. Although consolidated transportation has been regarded as the most promising strategy for reducing the transportation cost, it has not been successful in practice. In this paper we consider a consolidated transportation for the factories located in a limited area such as industrial complexes, where loads of various volume and weight are consolidated. We want to group the loads to assign to a truck of various size such that the total transportation cost is minimized, while the maximum volume constraint and weight constraint of each truck are satisfied. We suggest four heuristic algorithms to efficiently determine the groups of loads; and conduct a computer simulation to evaluate the performances of the algorithms.

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A Study on Modal Shift effect - Focused on O/D between Busan-Gyeonggi Area -

  • Kang, Dal-Won;An, Young-Mo;Nam, Ki-Chan;Kwak, Kyu-Seok
    • Journal of Navigation and Port Research
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    • v.35 no.9
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    • pp.777-783
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    • 2011
  • Interest about Modal Shift is not being decreased, and it is drawing limelight as green logistics which meets low carbon green growth of National development vision. As an effect of Modal Shift, not only reduction in CO2 emission but also reduction in social cost, logistics cost etc. are being discussed. However, until now research about its practical transformation effect has been scanty. In this study, the actual expenses via CO2 emission, social cost, and logistics cost etc. by road transportation and rail transportation of container cargo with Origin/Destination between Busan-Kyeonggi Area were calculated and we propose beneficial effects when transportation mode is transformed from road to rail with Scenario Planning.

A Study on the Nonscheduled Air Flight Method to Minimize the Transportation Cost (최소비용 수송방법 결정에 관한 연구 - 공군부정기공수 인원수송을 중심으로 -)

  • 이준모;이상진
    • Journal of the military operations research society of Korea
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    • v.25 no.1
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    • pp.1-12
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    • 1999
  • The ratio of the nonscheduled air flight transportation is about 49% among the personnel transportation at the Korean Air Force from 1993 to 1997. If an appropriate nonscheduled air flight method is developed, it may considerably achieve a reduction of the transportation cost. The purpose of this paper is to propose the least cost transportation method using the optimization technique. The nonscheduled air flight for the personnel can be classified into three types. The proposed least cost transportation method is tested with a current air flight method for each of three types. It is shown that a proposed method can considerably reduce the transportation cost.

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A Study on the Life Cycle Cost Evaluation of the Conventional Auxiliary Power Unit for 8200 Series Electric Locomotive (8200호대 전기기관차용 기존품 보조전원장치의 수명주기비용 평가에 관한 연구)

  • Lee, Kye-Seung;Kim, Wan-il;Kim, Jae-Moon
    • The Transactions of The Korean Institute of Electrical Engineers
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    • v.67 no.2
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    • pp.331-336
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    • 2018
  • In this paper, the life cycle cost of the auxiliary power unit in the conventional 8200 series electric locomotive is evaluated and an effective life cycle cost reduction method is sought. For this, a life cycle cost evaluation model was proposed using IEC 60300-3-3 standard. As a result of analysis, material cost which accounted for a large percentage of preventive maintenance cost, accounted for 64% of total cost, and breakdown maintenance cost was as high as 27%. Except for the cost of preventive maintenance, the breakdown maintenance cost ratio was the highest. In order to reduce the LCC of the auxiliary power unit(APU) of the 8200 series in the future, it is necessary to reduce the material cost in case of development and to secure the high reliability according to the parts manufacturing so as to minimize the maintenance cost.

A Strict Hub Network Design with Single Allocation for Road Freight Transportation (도로화물수송의 단일할당 제약 허브네트워크 설계)

  • Kim, Nam-Ju;Kim, Yong-Jin
    • Journal of Korean Society of Transportation
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    • v.29 no.2
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    • pp.91-100
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    • 2011
  • Hub network design for freight transportation is a decision process that determines hub locations together with freight transportation routes among shippers so as to ultimately minimize total logistics cost. This study presents the optimal location of hubs by strict hub network design policy with single allocation, which overcomes the limitation of Kim et al. (2008) that does not allow direct transportation among shippers. The greedy-interchange algorithm is employed for hub location decision process, and EMME/2 is adopted for the route searching process. Application of the processes to the nationwide highway network shows that the best hub locations in order are Seoul metropolitan, GyeongNam, Chung-nam, Jeon-Nam, Gyeong-Buk, Chung-Buk, and the locations are concentrated on the Seoul-Busan corridor. The strict hubnetwork design policy with single allocation increases the transportation distance but decreases the transportation cost by passing through the hubs instead of direct transportation. The reduction in total transportation cost can be achieved as the number of hubs increases, but the amount of the reduction gradually decreases because the cost reduction from the decrease in detour transportation distance between non-hubs and hubs becomes less than the discount reduction from dispersion of inter-hubs transportation volumes.