Thailand is the world’s leading natural rubber exporting country, accounting for 36.8% of the world market. In addition, the country is a member of the ASEAN Economic Community, aiming to be the center of the transportation in the region. Multimodal transportation is then encouraged to enhance the transport efficiency and reduce the logistics cost. This study develops the system dynamics model of multimodal transportation of rubber product in Thailand, utilizing the system dynamics modeling approach. Six savings and five costs related to the multimodal transportation are considered in the model. The simulation results show a negative cash flow at the beginning of the simulation years due to high investment in the multimodal-related facilities and infrastructure. With continuous use of multimodal transportation, the net cash flow becomes positive, and the project reaches the internal rate of return of 12% at the end of year 13. The results also show that the saving in truck rental cost and the product damage cost are the most important benefit and cost of multimodal transportation, respectively. The study results can be used as a guideline for the rubber and exporting companies, as well as the government, to effectively plan for the multimodal transportation in the long-term.
A System Dynamics Model of Multimodal Transportation of Rubber Products in Thailand
Lect.Notes Mechanical Engineering
The 10th International Conference on Engineering, Project, and Production Management ; Chapter : 54 ; 659-671
2020-03-04
13 pages
Article/Chapter (Book)
Electronic Resource
English
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