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Title:

ECONOMIC CHARACTERISTICS OF MULTIPLE VEHICLE DELIVERY TOURS SATISFYING TIME CONSTRAINTS

Accession Number:

00715572

Record Type:

Component

Availability:

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Order URL: http://worldcat.org/issn/03611981

Abstract:

Since deregulation of the aviation industry, a substantial body of literature has emerged analyzing the economic structure of passenger carrier operations. By comparison, a paucity of literature exists that addresses the economics of air freight transportation. This study contributes to filling that void by assessing the economic structure of ground-side freight distribution for air express carriers. To do so, we develop an "engineering" cost model of the ground-side distribution process. This circumvents the problem that appropriate historical performance data are not available with which to develop an "economic" cost model and affords greater flexibility and accuracy than the more frequently applied econometric based cost models. The cost model is developed by first employing a mathematical heuristic to design and locate freight delivery subregions employed by freight carriers operating under time constraints. The results of the design heuristic are then used to create a model that incorporates costs of overcoming distance, stopping costs, marginal freight distribution costs, and fixed vehicle costs. It is then used to demonstrate that ground-side freight distribution operations exhibit significant economies of scale and profound economies of density. Furthermore, it is indicated that increasing the delivery time constraint decreases distribution costs. However, this decrease in costs must be tempered with the tradeoff that increasing the delivery time constraint could decrease the market available to the carrier.

Supplemental Notes:

This paper appears in Transportation Research Record No. 1506. Airport and Air Transportation Issues. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved

Monograph Accession #:

01399818

Language:

English

Authors:

Kiesling, Max K
Hansen, Mark M

Pagination:

p. 61-69

Publication Date:

1995

Serial:

Transportation Research Record

Issue Number: 1506
Publisher: Transportation Research Board
ISSN: 0361-1981

Features:

Figures (6) ; References (14) ; Tables (1)

Old TRIS Terms:

Subject Areas:

Aviation; Economics; Finance; Freight Transportation; Highways; Society

Files:

TRIS, TRB

Created Date:

Jan 4 1996 12:00AM

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