01155638

Component

This paper presents a new theoretical approach to accommodating supply chain structure in models of freight mode choice and illustrates the application of this method using data from the 2004 French shipper survey (ECHO). A unique feature of the ECHO dataset compared to other national freight data sources is that shipments were individually monitored from their origins to final customers, and all related agents in the chain were interviewed. The information collected provides a unique opportunity for some of the theoretical models of supply chain influence to be implemented and tested. The analysis focuses on modelling shippers’ choice of modes using multinomial logit (MNL), nested logit (NL) and cross-nested logit (CNL) models. To explore the influence of supply chain structures, two separate NL model structures were developed; one is to account for the heightened correlation between transport modes sharing the same supply chain structure and another to account for the correlation between supply chain structures sharing the same mode. The CNL model was used to account jointly for the correlation along these two choice-dimensions. The results indicate that some gains in model performance can be obtained in the nesting by supply chain structure. The use of the CNL model also leads to some further gains in model fit. Moreover, the resultant analysis of the cross-elasticities of choice performed under the CNL models allows us to gain much further insight into shippers’ choice behaviour with respect to transport modes and supply chains.

01147878

10-1661

English

15p

2010

Transportation Research Board 89th Annual Meeting

DVD

Figures (2) ; References (37) ; Tables (2)

Freight traffic; Mode choice; Multinomial logits; Supply chain management

Nested logit models

Data and Information Technology; Freight Transportation

Transportation Research Board Annual Meeting 2010 Paper #10-1661

BTRIS, TRIS, TRB

Jan 25 2010 10:44AM