Consideration Of Transportation Costs Research Articles

Optimization and Benefit Analysis of Grain Trade in Belt and Road Countries.

Grain trade in Belt and Road (B&R) countries shows a mismatch between the volume and direction of grain flows and actual demand. With economic and industrial development, the water crisis has intensified, which poses a great challenge to the security of world grain supply and demand. There are few studies on the reconstruction of grain trade relations from the perspective of grain economic value. In this paper, a linear optimization model considering opportunity cost is proposed to fill the gap, and it is compared and analyzed with the optimization model considering only transportation cost. The grain supply and demand structures in both optimization results show characteristics of geographical proximity and long-tail distribution. Furthermore, the economic and water resource benefits resulting from the two optimal configurations are compared and analyzed. It is found that the economic benefits generated by grain trade in B&R countries with the consideration of opportunity cost not only cover transportation costs but also generate an economic value of about 130 trillion US dollars. Therefore, considering opportunity cost in grain trade is of great significance for strengthening cooperation and promoting the economic development of countries under the B&R framework. In terms of resource benefits, the grain trade with consideration of opportunity cost saves nearly 28 billion cubic meters of water, or about 5% of the total virtual water flow. However, about 72 billion cubic meters of water is lost for the grain trade with consideration of transportation cost. This study will help to formulate and adjust policies related to the "Belt and Road Initiative" (B&R Initiative), so as to maximize the economic benefits while optimizing the structure of grain trade and alleviating water scarcity pressures.

Hemodialysis and Peritoneal Dialysis in Germany from a Health Economic View-A Propensity Score Matched Analysis.

Hemodialysis (HD) and peritoneal dialysis (PD) are deemed medically equivalent for therapy of end-stage renal disease (ESRD) and reimbursed by the German statutory health insurance (SHI). However, although the home dialysis modality PD is associated with higher patient autonomy than HD, for unknown reasons, PD uptake is low in Germany. Hence, we compared HD with PD regarding health economic outcomes, particularly costs, as potentially relevant factors for the predominance of HD. Claims data from two German health insurance funds were analysed in a retrospective cohort study regarding the prevalence of HD and PD in 2013-2016. Propensity score matching created comparable HD and PD groups (n = 436 each). Direct annual health care costs were compared. A sensitivity analysis included a comparison of different matching techniques and consideration of transportation costs. Additionally, hospitalisation and survival were investigated using Poisson regression and Kaplan-Meier curves. Total direct annual average costs were higher for HD (€47,501) than for PD (€46,235), but not significantly (p = 0.557). The additional consideration of transportation costs revealed an annual cost advantage of €7000 for PD. HD and PD differed non-significantly in terms of hospitalisation and survival rates (p = 0.610/p = 0.207). PD has a slight non-significant cost advantage over HD, especially when considering transportation costs.

Two-Stage Robust Optimization Model for Fresh Cold Chain considering Carbon Emissions and Uncertainty

Sustainable development is an everlasting theme and lasting strategy in today’s era. Low-carbon economy is an inevitable approach to the implementation of sustainable development. Cold chain logistics has become one of the main sources of carbon emissions. However, in the research on location planning of cold chain logistics, the costs of carbon emissions have not been taken into consideration in previous studies. The two-stage stochastic optimization (TSSO) model was established based on the comprehensive consideration of transportation costs, time penalty costs, and carbon emission costs. In this case, it is extremely difficult to deal with uncertainty in TSSO model. Therefore, this paper constructs a two-stage robust optimization (TSRO) model using data-driven method and robust optimization theory and verifies the validity of this model through an actual case. The application of this method to a cold chain logistics enterprise showed that the service level of logistics cannot be guaranteed by stochastic optimization model. In the TSRO model, the costs increase by 2.18% at the price of robustness, whereas logistics service level shows an upward trend (from 85.83% to 92.75%). In the TSRO model, enterprises are forced to choose a better distribution path when carbon tax increases, which not only helps enterprises save costs but also achieves low-carbon environmental benefits.

Applying Graph Theory to Some Problems of Economic Dynamics

This paper studies dynamic models of production and exchange on graph with consideration of transportation costs. Using graph and set of matrices, we introduce superlinear multivalued mappings which describe the exchange ratio in considered system. Effective trajectories of these models are studied. It is shown that trajectories can be constructed using the simplest equilibrium type mechanisms. Characteristics of effective trajectories in Neumann type models are given. Conditions for the existence of equilibrium state of the considered model are found.

Transportation Decision and Logistics Cost Analysis Based on Risk Sharing of Enterprises

Based on enterprises’ risk sharing strategy, transportation decisions such as the mode of transportation, transport volume and frequency are analyzed in this paper with a single supplier and multiple retailers as a whole research object. The effect of transportation decision on transportation cost is quantified, and a logistics cost model is established based on the comprehensive consideration of transportation cost and inventory cost. The logistics cost under risk sharing mode is calculated by using a numerical example of different kinds of products and is compared with the logistics cost under traditional mode, which provides a basis for effective logistics cost control.

A production–delivery lot sizing policy with stochastic delivery time and in consideration of transportation cost

An extension of the integrated production–delivery lot sizing model under stochastic delivery time with transportation cost is investigated. The delivery time is assumed to be exponentially distributed. The presumption, the optimum delivery quantity determining the minimum of the transportation cost, has been widely adopted in transportation management models. Hence, we model the transportation cost as a function of delivery quantity. We consider comprehensive costs in the optimization problem. The expected total cost per unit of time with respect to the delivery quantity is proved to be a convex function under certain feasible conditions. As a result of computational studies, our proposed production–delivery decision model has shown notably adaptable when the delivery time is random. In particular, when the producer’s and retailer’s carrying costs are low, and/or mean time of delivery and transportation costs are high, our suggested policy saves more than 9% as opposed to the scheme recommended by prior researches, which manifests highly advanced gains.

Designing a consumer products retail chain inventory replenishment policy with the consideration of transportation costs

During the designing phase of a retail chain, a very important decision appears to fulfil the client service target with the total minimum cost as a trade-off between inventory management policies for each shop and delivery policies from the central warehouse. This balance is the basis for key decisions, such as inventory planning, space allocated to the shops, delivery management and customer responsiveness. In this paper, we (a) analyze and model this problem, including some usual operational constraints at the shop level; (b) apply to a realistic example; and (c) find that, in some instances, total costs can be lowered while increasing customer responsiveness.

Model and algorithm of an inventory problem with the consideration of transportation cost

In this paper, we address the problem of deciding the optimal ordering quantity and frequency for a supplier-retailer logistic system in which the transportation cost as well as the multiple uses of the vehicles are considered. Based on the traditional economic order quantity (EOQ) formula, a modified EOQ model is set up and an algorithm for the model is presented. Computational results verify the proposed model as well as the efficiency of the algorithm.

On the Effect of Centralization on Expected Costs in a Multi-location Newsboy Problem

This paper deals with a single-period, single-product inventory model with several individual sources of demand. It is a multi-location problem with an opportunity for centralization. Two types of inventory system are considered in this paper: the decentralized system and the centralized system. The aim of this paper is to extend Eppen's model by adding the consideration of transportation cost to constitute a new inventory model. With this new inventory model we prove three theorems that include the results of Eppen's model.

On the Effect of Centralization on Expected Costs in a Multi-Location Newsboy Problem

This paper deals with a single-period, single-product inventory model with several individual sources of demand. It is a multi-location problem with an opportunity for centralization. Two types of inventory system are considered in this paper: the decentralized system and the centralized system. The aim of this paper is to extend Eppen's model by adding the consideration of transportation cost to constitute a new inventory model. With this new inventory model we prove three theorems that include the results of Eppen's model.

Optimization Model for a Regional System of Solid-Waste and Wastewater Disposal Which Considers Legal Pollution Standards

This paper describes an operations research procedure based on the theory of graphs. It serves to determine optimal locations for the facilities of a regional system of solid-waste and wastewater disposals, with consideration of transportation costs, processing costs, and pollution standards. In the literature, planning problems of this kind are solved by means of combined, binary, linear optimization algorithms. The procedure presented here is based on a branch-and-bound method and a flow-graph algorithm. Within this approach it is possible to integrate explicitly equipment such as incinerators, or composting plants, or sewage treatment plants, where quantity reducing processes occur.