With growing concerns related to the environment, sustainable transportation has gained importance. For geographies with an ample coastline, coastal shipping offers a sustainable transportation option to move massive freight quantities. This paper presents a case that allows students to appreciate the role of coastal shipping in multimodal logistics planning. Furthermore, it gives students an opportunity to mathematically model transportation planning at a strategic and tactical level for automotive distribution. The students learn how to assess the financial viability of a mode shift from roadways to coastal shipping. The instructors can use this case for theoretical discussion on multimodal logistics and the application of mixed-integer linear programming (MILP) and heuristics as solution methods. Furthermore, the case presents an opportunity to demonstrate the improvement in solution quality with an MILP solver compared with heuristics.
Read full abstract