Abstract
An analytical framework is developed to account for both the weight and the cubic volume of freight when selecting the most cost-effective shipping routes. The objective is to achieve higher utilizations of both the weight and the volume capacities of the carrying vehicles, achieved in this case by mixing freight at transshipment terminals. This paper develops a marginal cost based framework to analyze the resulting tradeoffs between travel distance and vehicle capacity utilization in the context of freight carrier operations. The framework is robust and requires only a relatively small number of system parameters. It will be used to show how weight and volume, along with travel distance and other key system parameters, play an important role in determining cost-effective shipping routes.
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