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Modeling shipper costs in physical distribution analysis

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  • Higginson, James K.

Abstract

A common objective of analytical modeling of a shipper's physical distribution system is the minimization of costs. As a result, many cost expressions relating to distribution activities have appeared in the literature. This paper discusses the modeling of shipper costs through an examination of these expressions and their relevance to actual costs. Some conceptual background to the modeling of logistics costs is presented, and general cost classifications relevant to a shipper's distribution system are outlined. The components of each classification are discussed and summarized by reviewing cost expressions in the literature. A decision table is presented to assist modelers in developing such expressions. Specific and general conclusions are given, and issues regarding these conclusions are discussed.

Suggested Citation

  • Higginson, James K., 1993. "Modeling shipper costs in physical distribution analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(2), pages 113-124, April.
    • Handle: RePEc:eee:transa:v:27:y:1993:i:2:p:113-124
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    Cited by:

    1. Yang, Xuejing & Low, Joyce M.W. & Tang, Loon Ching, 2011. "Analysis of intermodal freight from China to Indian Ocean: A goal programming approach," Journal of Transport Geography, Elsevier, vol. 19(4), pages 515-527.
    2. Engebrethsen, Erna & Dauzère-Pérès, Stéphane, 2019. "Transportation mode selection in inventory models: A literature review," European Journal of Operational Research, Elsevier, vol. 279(1), pages 1-25.
    3. Novaes, Antonio G. N. & Graciolli, Odacir D., 1999. "Designing multi-vehicle delivery tours in a grid-cell format," European Journal of Operational Research, Elsevier, vol. 119(3), pages 613-634, December.
    4. Michael Godfrey & Andrew Manikas, 2012. "Teaching Supply Chain Management Students About Using Actual Motor Carrier Freight Rates In Purchase Lotsizing Models," Business Education and Accreditation, The Institute for Business and Finance Research, vol. 4(2), pages 49-59.
    5. Andrew Manikas & Michael Godfrey, 2018. "A Spreadsheet Approach For Incorporating Actual Motor Carrier Freight Rates And External Environmental Costs In A Newsvendor Model," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 11(1), pages 55-72.
    6. Chang, Tsung-Sheng, 2009. "Decision support for truckload carriers in one-shot combinatorial auctions," Transportation Research Part B: Methodological, Elsevier, vol. 43(5), pages 522-541, June.

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