publication . Article . 1990

Fleet Size Planning when Outside Carrier Services Are Available

Martha G. Pilcher; John G. Klincewicz; Hanan Luss;
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  • Published: 01 Jan 1990 Journal: Transportation Science, volume 24, pages 169-182 (issn: 0041-1655, eissn: 1526-5447, Copyright policy)
  • Publisher: Institute for Operations Research and the Management Sciences (INFORMS)
Abstract
The delivery of goods from a warehouse to local customers is a critical aspect of a material logistics system. A strategic decision must be made periodically (e.g., once a year) whether to maintain a private delivery fleet, to employ outside commercial carrier services, or to use a combination of both options. We seek to develop a methodology to address this long range planning decision. Our model considers a geographic area, with random daily demands, served by a single warehouse. The costs considered include the fixed and variable (per mile) costs of a private vehicle and the outside carriers' delivery charges. A private vehicle is constrained by the length of...
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doi: 10.1287/trsc.24.3.169
Subjects
free text keywords: Transportation, Geographic area, Fleet management, business.industry, business, Long-range planning, Warehouse, Transport engineering, Day to day, Mile, Facility location problem
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