* BY PROF JASDEEP S CHADHA

*
* SELECTION OF TRANSPORTATION STRATEGY
* CHOICE OF TRANSPORTATION MODE

*
* TC IS FUNCTION OF DISTANCE AND QUANTITY
OF GOODS SHIPPED
* TR(RATES/TON) DECREASES WITH INCREASING
DISTANCE
* TR DECREASE WITH INCREASE IN SHIPMENT
WEIGHT
* DRIVER/FUEL DEPENDS ON DISTANCE ONLY

*
* ALWAYS OPERATES ON FTL
* <FTL, INCREASE TRANSPORTATION COST
* HIGHER LOAD USES BIGGER VEHICLE,
COST/TON GOES DOWN
* FREIGHT IS COST/KG/KM
* FIG 5.1 PAGE 105

*
*RATIO OF RUPEE VALUE TO WEIGHT
*ALLOWS FIRM TO EXAMINE TRADEOFF
BETWEEN INVENTORY AND TC
*HIGHER VD ----FAST AND EXPENSIVE MODE
OF TRANSPORT
*LOWER VD---SLOWER MODE OF
TRANSPORTATION
*HIGH VD-ELECTRONICS
*LOW VD-CEMENT,COAL ETC

*
*RAIL-LOW VD PRODUCTS, 30% OF FREIGHT
MOVEMENT, OUT OF THIS 95% BULK GOODS
WITHIN THAT COAL IS 50%
*ROAD-TRUCKSDOOR TO DOOR SHIPMENT
EXPENSIVE THAN RAIL
*WATER- CHEAPEST MODE BUT TAKE MAX
TIME
*AIR-COSTLIEST MODE BUT TAKE MIN TIME
*PIPELINES-PETROLEUM AND NATURAL GAS

*
* FREIGHT COST-W,RA,RO,AIR*
* LOT SIZE-AIR,RO,RA,W
* DELIVERY TIME-AIR,RO,RA,W
* DELIVERY TIME VARIABILITY-AIR,RO,RA,W
* LOSSES AND DAMAGES-W,AIR,RO,RA
* *SMALLEST TO LARGEST

*
* SHIP DIRECTLY FROM PLANT TO EACH MARKET
* AGG DEMAND ACROSS DEPOT AND USING A MILK
RUN FROM EACH PLANT
* SHIP VIA DISTRIBUTION CENTRE

* (EXAMPLE ON PAGE 114)

*
* REFER DATA ON PAGE 115
* CROSS DOCKING-WALMART