IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v103y2022ics0969699722000734.html
   My bibliography  Save this article

Trade-offs in the landside operations of air cargo hubs: Horizontal cooperation and shipment consolidation policies considering capacitated nodes

Author

Listed:
  • Romero-Silva, Rodrigo
  • Mujica Mota, Miguel

Abstract

Landside operations in air cargo terminals consist of many freight forwarders (FFWs) delivering and picking up cargo at the capacity-constrained loading docks at the airport's ground handlers' (GHs) facilities. To improve the operations of the terminal and take advantage of their geographical proximity a small set of FFWs can build a coalition to consolidate stochastically-arriving shipments and share truck fleet capacity while other FFWs continue bringing cargo to the terminal in a non-cooperative manner. Results from a detailed discrete-event simulation model of the cargo landside operations in Amsterdam Aiport showed that all operational policies had trade-offs in terms of the average shipment cycle time of coalition FFWs, the average shipment cycle time of non-coalition FFWs, and the total distance traveled by the coalition fleet, suggesting that horizontal cooperation in this context was not always beneficial, contrary to what previous studies on horizontal cooperation have found. Since dock capacity constitutes a significant constraint on operations in air cargo hubs, this paper also investigates the effect of dock capacity utilization and horizontal cooperation on the performance of consolidation policies implemented by the coalition. Thus, we built a general model of the air cargo terminal to analyze the effects caused by dock capacity utilization without the added complexity of landside operations at Amsterdam Airport to investigate whether the results hold for more general scenarios. Results from the general simulation model suggest that, in scenarios where dock and truck capacity become serious constraints, the average shipment cycle times of non-coalition FFWs are reduced at the expense of an increase in the cycle times of FFWs who constitute the coalition. A good balance among all the performance measures considered in this study is reached by following a policy that takes advantage of consolidating shipments based on individual visits to GH.

Suggested Citation

  • Romero-Silva, Rodrigo & Mujica Mota, Miguel, 2022. "Trade-offs in the landside operations of air cargo hubs: Horizontal cooperation and shipment consolidation policies considering capacitated nodes," Journal of Air Transport Management, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:jaitra:v:103:y:2022:i:c:s0969699722000734
    DOI: 10.1016/j.jairtraman.2022.102253
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699722000734
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2022.102253?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Archetti, Claudia & Peirano, Lorenzo, 2020. "Air intermodal freight transportation: The freight forwarder service problem," Omega, Elsevier, vol. 94(C).
    2. Ren, Shuyun & Choi, Tsan-Ming & Lee, Ka-Man & Lin, Lei, 2020. "Intelligent service capacity allocation for cross-border-E-commerce related third-party-forwarding logistics operations: A deep learning approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 134(C).
    3. Chabot, Thomas & Bouchard, Florence & Legault-Michaud, Ariane & Renaud, Jacques & Coelho, Leandro C., 2018. "Service level, cost and environmental optimization of collaborative transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 110(C), pages 1-14.
    4. Joen Dahlberg & Stefan Engevall & Maud Göthe-Lundgren & Kurt Jörnsten & Mikael Rönnqvist, 2019. "Incitements for transportation collaboration by cost allocation," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 27(4), pages 1009-1032, December.
    5. Cetinkaya, Sila & Mutlu, Fatih & Lee, Chung-Yee, 2006. "A comparison of outbound dispatch policies for integrated inventory and transportation decisions," European Journal of Operational Research, Elsevier, vol. 171(3), pages 1094-1112, June.
    6. Ponce, Diego & Contreras, Ivan & Laporte, Gilbert, 2020. "E-commerce shipping through a third-party supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    7. Ülkü, M. Ali & Bookbinder, James H., 2012. "Optimal quoting of delivery time by a third party logistics provider: The impact of shipment consolidation and temporal pricing schemes," European Journal of Operational Research, Elsevier, vol. 221(1), pages 110-117.
    8. Schmidberger, Stephan & Bals, Lydia & Hartmann, Evi & Jahns, Christopher, 2009. "Ground handling services at European hub airports: Development of a performance measurement system for benchmarking," International Journal of Production Economics, Elsevier, vol. 117(1), pages 104-116, January.
    9. Barenji, Ali Vatankhah & Wang, W.M. & Li, Zhi & Guerra-Zubiaga, David A., 2019. "Intelligent E-commerce logistics platform using hybrid agent based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 15-31.
    10. Shangyao Yan & Chia-Hung Chen & Chung-Kai Chen, 2008. "Short-term shift setting and manpower supplying under stochastic demands for air cargo terminals," Transportation, Springer, vol. 35(3), pages 425-444, May.
    11. Satır, Benhür & Erenay, Fatih Safa & Bookbinder, James H., 2018. "Shipment consolidation with two demand classes: Rationing the dispatch capacity," European Journal of Operational Research, Elsevier, vol. 270(1), pages 171-184.
    12. Cruijssen, Frans & Cools, Martine & Dullaert, Wout, 2007. "Horizontal cooperation in logistics: Opportunities and impediments," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(2), pages 129-142, March.
    13. Ankersmit, Steven & Rezaei, Jafar & Tavasszy, Lori, 2014. "The potential of horizontal collaboration in airport ground freight services," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 169-181.
    14. Bookbinder, James H. & Higginson, James K., 2002. "Probabilistic modeling of freight consolidation by private carriage," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(5), pages 305-318, September.
    15. Cook, Robert A. & Lodree, Emmett J., 2017. "Dispatching policies for last-mile distribution with stochastic supply and demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 353-371.
    16. Berbeglia, Gerardo & Cordeau, Jean-François & Laporte, Gilbert, 2010. "Dynamic pickup and delivery problems," European Journal of Operational Research, Elsevier, vol. 202(1), pages 8-15, April.
    17. Zhang, Yuankai & Sun, Lijun & Hu, Xiangpei & Zhao, Chen, 2019. "Order consolidation for the last-mile split delivery in online retailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 309-327.
    18. Romero-Silva, Rodrigo & Shaaban, Sabry & Marsillac, Erika & Hurtado, Margarita, 2018. "Exploiting the characteristics of serial queues to reduce the mean and variance of flow time using combined priority rules," International Journal of Production Economics, Elsevier, vol. 196(C), pages 211-225.
    19. Xi, Xiang & Changchun, Liu & Yuan, Wang & Loo Hay, Lee, 2020. "Two-stage conflict robust optimization models for cross-dock truck scheduling problem under uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    20. Çetinkaya, SIla & Bookbinder, James H., 2003. "Stochastic models for the dispatch of consolidated shipments," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 747-768, September.
    21. Yuan, Xue-Ming & Low, Joyce M.W. & Ching Tang, Loon, 2010. "Roles of the airport and logistics services on the economic outcomes of an air cargo supply chain," International Journal of Production Economics, Elsevier, vol. 127(2), pages 215-225, October.
    22. Qiu, Xuan & Luo, Hao & Xu, Gangyan & Zhong, Runyang & Huang, George Q., 2015. "Physical assets and service sharing for IoT-enabled Supply Hub in Industrial Park (SHIP)," International Journal of Production Economics, Elsevier, vol. 159(C), pages 4-15.
    23. Sağlam, Ümit & Banerjee, Avijit, 2018. "Integrated multiproduct batch production and truck shipment scheduling under different shipping policies," Omega, Elsevier, vol. 74(C), pages 70-81.
    24. Defryn, Christof & Sörensen, Kenneth, 2018. "Multi-objective optimisation models for the travelling salesman problem with horizontal cooperation," European Journal of Operational Research, Elsevier, vol. 267(3), pages 891-903.
    25. Fatih Mutlu & Sila Çetinkaya & James Bookbinder, 2010. "An analytical model for computing the optimal time-and-quantity-based policy for consolidated shipments," IISE Transactions, Taylor & Francis Journals, vol. 42(5), pages 367-377.
    26. Boonekamp, Thijs & Burghouwt, Guillaume, 2017. "Measuring connectivity in the air freight industry," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 81-94.
    27. Mujica Mota, Miguel, 2015. "Check-in allocation improvements through the use of a simulation–optimization approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 320-335.
    28. Johansson, Lina & Sonntag, Danja R. & Marklund, Johan & Kiesmüller, Gudrun P., 2020. "Controlling distribution inventory systems with shipment consolidation and compound Poisson demand," European Journal of Operational Research, Elsevier, vol. 280(1), pages 90-101.
    29. Adrián Ramírez-Nafarrate & Rosa G. González-Ramírez & Neale R. Smith & Roberto Guerra-Olivares & Stefan Voß, 2017. "Impact on yard efficiency of a truck appointment system for a port terminal," Annals of Operations Research, Springer, vol. 258(2), pages 195-216, November.
    30. Burghouwt, Guillaume & Poort, Joost & Ritsema, Hendriena, 2014. "Lessons learnt from the market for air freight ground handling at Amsterdam Airport Schiphol," Journal of Air Transport Management, Elsevier, vol. 41(C), pages 56-63.
    31. Zhou, Guanghui & Hui, Yer Van & Liang, Liang, 2011. "Strategic alliance in freight consolidation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(1), pages 18-29, January.
    32. Ozlem Ergun & Gultekin Kuyzu & Martin Savelsbergh, 2007. "Reducing Truckload Transportation Costs Through Collaboration," Transportation Science, INFORMS, vol. 41(2), pages 206-221, May.
    33. Defryn, Christof & Sörensen, Kenneth & Dullaert, Wout, 2019. "Integrating partner objectives in horizontal logistics optimisation models," Omega, Elsevier, vol. 82(C), pages 1-12.
    34. Nguyen, Christine & Dessouky, Maged & Toriello, Alejandro, 2014. "Consolidation strategies for the delivery of perishable products," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 108-121.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tanrıverdi, Gökhan & Ecer, Fatih & Durak, Mehmet Şahin, 2022. "Exploring factors affecting airport selection during the COVID-19 pandemic from air cargo carriers’ perspective through the triangular fuzzy Dombi-Bonferroni BWM methodology," Journal of Air Transport Management, Elsevier, vol. 105(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wei, Bo & Çetinkaya, Sıla & Cline, Daren B.H., 2023. "Inbound replenishment and outbound dispatch decisions under hybrid shipment consolidation policies: An analytical model and comparison," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).
    2. Chen, Jing & Dong, Ming & Xu, Lei, 2018. "A perishable product shipment consolidation model considering freshness-keeping effort," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 115(C), pages 56-86.
    3. E. Ursavas & Stuart X. Zhu, 2018. "Integrated Passenger and Freight Train Planning on Shared-Use Corridors," Service Science, INFORMS, vol. 52(6), pages 1376-1390, December.
    4. Sonntag, Danja R. & Schrotenboer, Albert H. & Kiesmüller, Gudrun P., 2023. "Stochastic inventory routing with time-based shipment consolidation," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1186-1201.
    5. Zhang, Yuankai & Sun, Lijun & Hu, Xiangpei & Zhao, Chen, 2019. "Order consolidation for the last-mile split delivery in online retailing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 309-327.
    6. Peng, Xiaoshuai & Zhang, Lele & Thompson, Russell G. & Wang, Kangzhou, 2023. "A three-phase heuristic for last-mile delivery with spatial-temporal consolidation and delivery options," International Journal of Production Economics, Elsevier, vol. 266(C).
    7. Nassim Mrabti & Nadia Hamani & Laurent Delahoche, 2022. "A Comprehensive Literature Review on Sustainable Horizontal Collaboration," Sustainability, MDPI, vol. 14(18), pages 1-38, September.
    8. Kyunghoon Kang & Ki-sung Hong & Ki Hong Kim & Chulung Lee, 2017. "Shipment Consolidation Policy under Uncertainty of Customer Order for Sustainable Supply Chain Management," Sustainability, MDPI, vol. 9(9), pages 1-17, September.
    9. Zhang, Wentao & Uhan, Nelson A. & Dessouky, Maged & Toriello, Alejandro, 2018. "Moulin mechanism design for freight consolidation," Transportation Research Part B: Methodological, Elsevier, vol. 116(C), pages 141-162.
    10. Andersson, Jonas & Malmberg, Filip & Marklund, Johan, 2023. "Exact analysis of One-Warehouse-Multiple-Retailer inventory systems with quantity restricted deliveries," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1161-1172.
    11. Jana Ralfs & Gudrun P. Kiesmüller, 2022. "Inventory management with advance demand information and flexible shipment consolidation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(4), pages 1009-1044, December.
    12. Dinçer Konur & Joseph Geunes, 2019. "Integrated districting, fleet composition, and inventory planning for a multi-retailer distribution system," Annals of Operations Research, Springer, vol. 273(1), pages 527-559, February.
    13. Margaretha Gansterer & Richard F. Hartl, 2020. "Shared resources in collaborative vehicle routing," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(1), pages 1-20, April.
    14. Hezarkhani, Behzad & Slikker, Marco & Van Woensel, Tom, 2019. "Gain-sharing in urban consolidation centers," European Journal of Operational Research, Elsevier, vol. 279(2), pages 380-392.
    15. Satır, Benhür & Erenay, Fatih Safa & Bookbinder, James H., 2018. "Shipment consolidation with two demand classes: Rationing the dispatch capacity," European Journal of Operational Research, Elsevier, vol. 270(1), pages 171-184.
    16. Van Asch, Thomas & Dewulf, Wouter & Kupfer, Franziska & Cárdenas, Ivan & Van de Voorde, Eddy, 2020. "Cross-border e-commerce logistics – Strategic success factors for airports," Research in Transportation Economics, Elsevier, vol. 79(C).
    17. Soriano, Adria & Gansterer, Margaretha & Hartl, Richard F., 2023. "The multi-depot vehicle routing problem with profit fairness," International Journal of Production Economics, Elsevier, vol. 255(C).
    18. Kang, Jae-Hun & Kim, Yeong-Dae, 2010. "Coordination of inventory and transportation managements in a two-level supply chain," International Journal of Production Economics, Elsevier, vol. 123(1), pages 137-145, January.
    19. Gansterer, Margaretha & Hartl, Richard F., 2018. "Collaborative vehicle routing: A survey," European Journal of Operational Research, Elsevier, vol. 268(1), pages 1-12.
    20. Mancini, Simona & Gansterer, Margaretha & Hartl, Richard F., 2021. "The collaborative consistent vehicle routing problem with workload balance," European Journal of Operational Research, Elsevier, vol. 293(3), pages 955-965.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:103:y:2022:i:c:s0969699722000734. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.