It is considered that Random transportation capacity of the third party logistics provider and variable transit time, and study analytically the implication of a controlled transit time and a random transportation capacity on the optimal shipping strategy. After formulating the general model, the optimal shipment size and transit time between a origin and a destination have been developed to achieve the logistics cost minimization. Particularly, we have shown that the expected total cost is a unimodal function and quasi-convex in the shipment size. A numerical example is given to demonstrate the effectiveness of the proposed model and perform the sensitivity analysis. Some useful observations are made from the sensitivity analysis.


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    Title :

    Optimizing Shipment Size with Variable Transit Time and Random Transportation Capacity in Outsourcing Transportation Service


    Contributors:

    Conference:

    First International Conference on Transportation Engineering ; 2007 ; Southwest Jiaotong University, Chengdu, China



    Publication date :

    2007-07-09




    Type of media :

    Conference paper


    Type of material :

    Electronic Resource


    Language :

    English




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