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Dependence between Shipment Size and Mode in Freight Transportation

Author

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  • Randolph W. Hall

    (Transportation Research Department, General Motors Research Laboratories, Warren, Michigan)

Abstract

This note examines the dependence between freight mode and shipment size when they are chosen simultaneously to minimize transportation and inventory cost. Transportation modes which consolidate freight over many origins and destinations are shown to be least expensive for small supplier production rates (i.e., flows between the supplier and customer); transportation modes which do not consolidate are least expensive for large production rates. Optimal shipment size is a discontinuous function of production rate. Thus, certain shipment sizes are never optimal.

Suggested Citation

  • Randolph W. Hall, 1985. "Dependence between Shipment Size and Mode in Freight Transportation," Transportation Science, INFORMS, vol. 19(4), pages 436-444, November.
    • Handle: RePEc:inm:ortrsc:v:19:y:1985:i:4:p:436-444
    DOI: 10.1287/trsc.19.4.436
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    Cited by:

    1. Holguín-Veras, José & Kalahasthi, Lokesh & Campbell, Shama & González-Calderón, Carlos A. & (Cara) Wang, Xiaokun, 2021. "Freight mode choice: Results from a nationwide qualitative and quantitative research effort," Transportation Research Part A: Policy and Practice, Elsevier, vol. 143(C), pages 78-120.
    2. Jose Holguín-Veras & Ning Xu & Gerard Jong & Hedi Maurer, 2011. "An Experimental Economics Investigation of Shipper-carrier Interactions in the Choice of Mode and Shipment Size in Freight Transport," Networks and Spatial Economics, Springer, vol. 11(3), pages 509-532, September.
    3. Abate, Megersa & de Jong, Gerard, 2014. "The optimal shipment size and truck size choice – The allocation of trucks across hauls," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 262-277.
    4. Sophie D. Lapierre & Angel B. Ruiz & Patrick Soriano, 2004. "Designing Distribution Networks: Formulations and Solution Heuristic," Transportation Science, INFORMS, vol. 38(2), pages 174-187, May.
    5. Martin Koning & François Combes & Raphael Piendl & Gernot Liedtke, 2018. "Transferability of models for logistics behaviors: A cross-country comparison between France and Germany for shipment size choice [La transférabilité des modèles de comportements logistiques : Une ," Post-Print hal-01916081, HAL.
    6. Raphael Piendl & Martin Koning & François Combes & Gernot Liedtke, 2022. "Building latent segments of goods to improve shipment size modeling: Confirmatory evidence from France," Post-Print hal-04117547, HAL.
    7. Kalahasthi, Lokesh & Holguín-Veras, José & Yushimito, Wilfredo F., 2022. "A freight origin-destination synthesis model with mode choice," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    8. Engebrethsen, Erna & Dauzère-Pérès, Stéphane, 2019. "Transportation mode selection in inventory models: A literature review," European Journal of Operational Research, Elsevier, vol. 279(1), pages 1-25.
    9. Afaf Haial & Loubna Benabbou & Abdelaziz Berrado, 2021. "Designing a Transportation-Strategy Decision-Making Process for a Supply Chain: Case of a Pharmaceutical Supply Chain," IJERPH, MDPI, vol. 18(4), pages 1-29, February.
    10. Keya, Nowreen & Anowar, Sabreena & Eluru, Naveen, 2019. "Joint model of freight mode choice and shipment size: A copula-based random regret minimization framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 97-115.
    11. Piendl, Raphael & Liedtke, Gernot & Matteis, Tilman, 2017. "A logit model for shipment size choice with latent classes – Empirical findings for Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 102(C), pages 188-201.
    12. Tyworth, John E. & Zeng, Amy Zhaohui, 1998. "Estimating the effects of carrier transit-time performance on logistics cost and service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(2), pages 89-97, February.

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