Chapter 9 - Freight Transportation and Logistics

Abstract

In order to produce high-quality products, accepted by the market, and to make profits, companies must synchronize production, dispatching, and transportation processes at different locations. Airfreight, motor carriers, ocean transportation, railroad, multi-modal transport operators, and couriers are the main transportation operators that appear, together with different suppliers, manufacturers, distributors, and retailers, in the stages of production, storage, transportation, distribution, and sale of goods. All of these stages are interconnected by various information and transportation tasks to be performed. In every production and sales process, there are material flows from raw material sources through factories, distribution centers, wholesalers, retailers to final customers. There are also the reverse flows of information and materials from the clients to the suppliers. The logistics that we study in this chapter have a task to synchronize material flows and information flows, to meet customer expectations, and to provide on-time delivery. The main task of distribution logistics is to deliver final products to customers. Distribution of goods from warehouses to shops and supermarkets cannot be well organized without appropriate vehicle routing and scheduling. Location analysis and vehicle routing/scheduling are two important areas where logistics and transportation intersect. In this chapter, we also outline the basics of the location analysis, and vehicle routing and scheduling problems.