Criteria analysis for deciding the LTL and FTL modes of transport

Diego Armando Soto De La Vega,Paula Horta Lemos,José Geraldo Vidal Vieira,João Eduardo Azevedo Ramos da Silva

doi:10.1590/1806-9649-2020v28e5065

Diego Armando Soto De La Vega, Paula Horta Lemos + Show 2 more

Open Access

https://doi.org/10.1590/1806-9649-2020v28e5065

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Journal: Gestão & Produção	Publication Date: Jan 1, 2021
Citations: 1	License type: CC BY 4.0

Affiliation: Universidade Federal de São Carlos

Abstract

Abstract: Choosing between Less Than Truckload (LTL) and Full Truckload (FTL) is based on a multicriteria decision because it takes into account aspects such as costs and operational efficiency in transportation, handling and stock of goods. The aim of this article is to provide a detailed analysis of the criteria that comprise the LTL and FTL transport decision using a multicriteria methodology that considers decision makers´ preferences. The SMARTS method was applied in a telecommunications company that outsources its logistics operation. Results show that the main criteria for choosing LTL shipment are related to the relationship with the customer and the efficiency in the delivery of the freight (reliability of the delivery time). On the other hand, choosing FTL transport requires a high weight given to the criteria regarding benefits and cost of transit inventory. The contribution of the research is to provide a structured and flexible analysis to choose the types of shipment (FTL and FLT) when taking into account the risk aversion of decision makers using a non-optimal approach, but with approximate solutions encompassing several qualitative and quantitative criteria in this choice.

Highlights

The problem of freight distribution via road transport involves a decision between two shipment modes: Full Truckload (FTL) and Less than Truckload (LTL)
To contract the FTL mode, the fixed cost is calculated according to the capacity of the rented vehicle, while for the LTL shipment the cost is based on the quantity shipped and the distance traveled (Rieksts & Ventura, 2010)
This study proposes a criteria analysis that influences decision making for choosing freight transport modes based on the Simple Multi-Attribute Ranking Technique using the Swings (SMARTS) method (Edwards & Barron, 1994), within the Multi-Attribute Utility Theory (MAUT) approach

Summary

Introduction

The problem of freight distribution via road transport involves a decision between two shipment modes: Full Truckload (FTL) and Less than Truckload (LTL). Costs and customer service time are the most cited in the literature in terms of choosing these two modes of transportation.

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Conclusion