IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v43y2013i2p182-193.html
   My bibliography  Save this article

Evaluation of Transportation Practices in the California Cut Flower Industry

Author

Listed:
  • Christine Nguyen

    (Daniel J. Epstein Department of Industrial and Systems Engineering, University of Southern California, Los Angeles, California 90089; and National Center for Metropolitan Transportation Research (METRANS), University of Southern California, Los Angeles, California 90089)

  • Alejandro Toriello

    (Daniel J. Epstein Department of Industrial and Systems Engineering, University of Southern California, Los Angeles, California 90089; and National Center for Metropolitan Transportation Research (METRANS), University of Southern California, Los Angeles, California 90089)

  • Maged Dessouky

    (Daniel J. Epstein Department of Industrial and Systems Engineering, University of Southern California, Los Angeles, California 90089; and National Center for Metropolitan Transportation Research (METRANS), University of Southern California, Los Angeles, California 90089)

  • James E. Moore

    (Daniel J. Epstein Department of Industrial and Systems Engineering, University of Southern California, Los Angeles, California 90089; and National Center for Metropolitan Transportation Research (METRANS), University of Southern California, Los Angeles, California 90089)

Abstract

In the past two decades, California’s share of the national cut flower market has decreased from 64 percent to 20 percent. California growers’ largest competitors are South American growers; Colombia controls 75 percent of the US market. South American growers have several competitive advantages, including the favorable trucking rates they enjoy by consolidating all shipments in Miami, Florida, prior to US distribution. This paper evaluates the California cut flower industry’s current transportation practices and investigates the feasibility and cost of establishing a shipping consolidation center in Oxnard, California. Applying a simple inventory management policy, we estimate a 35 percent system-wide transportation cost decrease of $20 million per year if all California cut flower growers participate in the consolidation center. The California Cut Flower Commission incorporated our findings into an application for federal funds from the US Department of Transportation to construct a new flower transportation and logistics center in California. The state’s flower growers are also searching for alternative ways to cooperatively fund a consolidation center.

Suggested Citation

  • Christine Nguyen & Alejandro Toriello & Maged Dessouky & James E. Moore, 2013. "Evaluation of Transportation Practices in the California Cut Flower Industry," Interfaces, INFORMS, vol. 43(2), pages 182-193, April.
    • Handle: RePEc:inm:orinte:v:43:y:2013:i:2:p:182-193
    DOI: 10.1287/inte.1120.0654
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.1120.0654
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.1120.0654?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Douglas A. Popken, 1994. "An Algorithm for the Multiattribute, Multicommodity Flow Problem with Freight Consolidation and Inventory Costs," Operations Research, INFORMS, vol. 42(2), pages 274-286, April.
    2. Dan O. Bausch & Gerald G. Brown & David Ronen, 1995. "Consolidating and Dispatching Truck Shipments of Mobil Heavy Petroleum Products," Interfaces, INFORMS, vol. 25(2), pages 1-17, April.
    3. Gerald Brown & Joseph Keegan & Brian Vigus & Kevin Wood, 2001. "The Kellogg Company Optimizes Production, Inventory, and Distribution," Interfaces, INFORMS, vol. 31(6), pages 1-15, December.
    4. Hark-Chin Hwang, 2009. "Inventory Replenishment and Inbound Shipment Scheduling Under a Minimum Replenishment Policy," Transportation Science, INFORMS, vol. 43(2), pages 244-264, May.
    5. Edoardo Marcucci & Romeo Danielis, 2008. "The potential demand for a urban freight consolidation centre," Transportation, Springer, vol. 35(2), pages 269-284, March.
    6. Mutlu, Fatih & Çetinkaya, SIla, 2010. "An integrated model for stock replenishment and shipment scheduling under common carrier dispatch costs," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(6), pages 844-854, November.
    7. Johan Marklund, 2011. "Inventory control in divergent supply chains with time‐based dispatching and shipment consolidation," Naval Research Logistics (NRL), John Wiley & Sons, vol. 58(1), pages 59-71, February.
    8. David Ronen, 1995. "Dispatching Petroleum Products," Operations Research, INFORMS, vol. 43(3), pages 379-387, June.
    9. Tyan, Jonah C. & Wang, Fu-Kwun & Du, Timon C., 2003. "An evaluation of freight consolidation policies in global third party logistics," Omega, Elsevier, vol. 31(1), pages 55-62, February.
    10. Russo, Francesco & Comi, Antonio, 2004. "A modelling system to link end-consumers and distribution logistics," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 28, pages 6-19.
    11. Chung-Yee Lee & Sila Çetinkaya & Wikrom Jaruphongsa, 2003. "A Dynamic Model for Inventory Lot Sizing and Outbound Shipment Scheduling at a Third-Party Warehouse," Operations Research, INFORMS, vol. 51(5), pages 735-747, October.
    12. Frank Chen & Tong Wang & Tommy Xu, 2005. "Integrated Inventory Replenishment and Temporal Shipment Consolidation: A Comparison of Quantity-Based and Time-Based Models," Annals of Operations Research, Springer, vol. 135(1), pages 197-210, March.
    13. Danielis, Romeo & Marcucci, Edoardo & Rotaris, Lucia, 2005. "Logistics managers' stated preferences for freight service attributes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(3), pages 201-215, May.
    14. Fatih Mutlu & Sila Çetinkaya & James Bookbinder, 2010. "An analytical model for computing the optimal time-and-quantity-based policy for consolidated shipments," IISE Transactions, Taylor & Francis Journals, vol. 42(5), pages 367-377.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Wentao & Uhan, Nelson A. & Dessouky, Maged & Toriello, Alejandro, 2018. "Moulin mechanism design for freight consolidation," Transportation Research Part B: Methodological, Elsevier, vol. 116(C), pages 141-162.
    2. Minyoung Yea & Seokhyun Chung & Taesu Cheong & Daeki Kim, 2018. "The Sharing of Benefits from a Logistics Alliance Based on a Hub-Spoke Network: A Cooperative Game Theoretic Approach," Sustainability, MDPI, vol. 10(6), pages 1-16, June.
    3. Weihong Hu & Zhuoting Yu & Alejandro Toriello & Maged M. Dessouky, 2020. "Decomposition‐based approximation algorithms for the one‐warehouse multi‐retailer problem with concave batch order costs," Naval Research Logistics (NRL), John Wiley & Sons, vol. 67(7), pages 503-523, October.
    4. Hu, Weihong & Toriello, Alejandro & Dessouky, Maged, 2018. "Integrated inventory routing and freight consolidation for perishable goods," European Journal of Operational Research, Elsevier, vol. 271(2), pages 548-560.
    5. Jun Li & Xiaoqiang Cai & Yinlian Zeng, 2016. "Cost allocation for less-than-truckload collaboration among perishable product retailers," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(1), pages 81-117, January.
    6. Nguyen, Christine & Dessouky, Maged & Toriello, Alejandro, 2014. "Consolidation strategies for the delivery of perishable products," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 108-121.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nguyen, Christine & Dessouky, Maged & Toriello, Alejandro, 2014. "Consolidation strategies for the delivery of perishable products," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 108-121.
    2. Wei, Bo & Çetinkaya, Sıla & Cline, Daren B.H., 2023. "Inbound replenishment and outbound dispatch decisions under hybrid shipment consolidation policies: An analytical model and comparison," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    3. E. Ursavas & Stuart X. Zhu, 2018. "Integrated Passenger and Freight Train Planning on Shared-Use Corridors," Service Science, INFORMS, vol. 52(6), pages 1376-1390, December.
    4. Andersson, Jonas & Malmberg, Filip & Marklund, Johan, 2023. "Exact analysis of One-Warehouse-Multiple-Retailer inventory systems with quantity restricted deliveries," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1161-1172.
    5. S Eom & E Kim, 2006. "A survey of decision support system applications (1995–2001)," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(11), pages 1264-1278, November.
    6. Sonntag, Danja R. & Schrotenboer, Albert H. & Kiesmüller, Gudrun P., 2023. "Stochastic inventory routing with time-based shipment consolidation," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1186-1201.
    7. Chen, Jing & Dong, Ming & Xu, Lei, 2018. "A perishable product shipment consolidation model considering freshness-keeping effort," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 115(C), pages 56-86.
    8. Mutlu, Fatih & Çetinkaya, Sıla, 2020. "Supplier–carrier–buyer channels: Contractual pricing for a carrier serving a supplier–buyer partnership," International Journal of Production Economics, Elsevier, vol. 230(C).
    9. Hanbazazah, Abdulkader S. & Abril, Luis & Erkoc, Murat & Shaikh, Nazrul, 2019. "Freight consolidation with divisible shipments, delivery time windows, and piecewise transportation costs," European Journal of Operational Research, Elsevier, vol. 276(1), pages 187-201.
    10. Hark-Chin Hwang, 2010. "Economic Lot-Sizing for Integrated Production and Transportation," Operations Research, INFORMS, vol. 58(2), pages 428-444, April.
    11. Jana Ralfs & Gudrun P. Kiesmüller, 2022. "Inventory management with advance demand information and flexible shipment consolidation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1009-1044, December.
    12. Dinçer Konur & Joseph Geunes, 2019. "Integrated districting, fleet composition, and inventory planning for a multi-retailer distribution system," Annals of Operations Research, Springer, vol. 273(1), pages 527-559, February.
    13. D Ronen & C A Goodhart, 2008. "Tactical store delivery planning," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(8), pages 1047-1054, August.
    14. Wong, Wai Hung & Leung, Lawrence C. & Hui, Yer Van, 2009. "Airfreight forwarder shipment planning: A mixed 0-1 model and managerial issues in the integration and consolidation of shipments," European Journal of Operational Research, Elsevier, vol. 193(1), pages 86-97, February.
    15. Furkan Uzar, M. & Çatay, Bülent, 2012. "Distribution planning of bulk lubricants at BP Turkey," Omega, Elsevier, vol. 40(6), pages 870-881.
    16. Yan Cheng Hsu & Jose L. Walteros & Rajan Batta, 2020. "Solving the petroleum replenishment and routing problem with variable demands and time windows," Annals of Operations Research, Springer, vol. 294(1), pages 9-46, November.
    17. Jesus Gonzalez-Feliu & Joelle Morana & Josep-Maria Salanova Grau & Tai-Yu Ma, 2013. "Design And Scenario Assessment For Collaborative Logistics And Freight Transport Systems," Articles, International Journal of Transport Economics, vol. 40(2).
    18. Hong, Ki-sung & Lee, Chulung, 2013. "Optimal time-based consolidation policy with price sensitive demand," International Journal of Production Economics, Elsevier, vol. 143(2), pages 275-284.
    19. Comi, Antonio & Delle Site, Paolo & Filippi, Francesco & Nuzzolo, Agostino, 2012. "Urban Freight Transport Demand Modelling: a State of the Art," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 51, pages 1-8.
    20. Chiang, Wen-Chyuan & Russell, Robert A., 2004. "Integrating purchasing and routing in a propane gas supply chain," European Journal of Operational Research, Elsevier, vol. 154(3), pages 710-729, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:43:y:2013:i:2:p:182-193. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.