Shipping mode choice. Case study
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1 Shipping mode choice Case study
2 The actors CARCONS PLC Company A that makes a specific product (i.e. components for cars) ITALTRAT SPA Company B that finalises CARCONS products 2
3 Problem Some geographical information CARCONS PLC Zaragoza ITALTRAT SPA Pescara 3
4 Problem The product flow 1. CARCONS PLC sends the products to ITALTRAT SPA 2. ITALTRAT SPA finalizes the products in two days and sends it to CARCONS PLC CARCONS PLC 1 2 ITALTRAT SPA Needed two days to finalize the product 4
5 Product of CARCONS The units are packed in reusable parallelepiped boxes product 25 Box dimensions (cm) (height) Box weight: 5 kg 40 (length) 30 (width) 5
6 The request from CARCONS PLC Contract: one year (240 working days) 1200 units for day to ITALTRAT SpA Monday Tuesday Wednesday Thursday Friday Saturday Sunday YES YES YES YES YES YES YES Travel start from CARCONS NO CONSTRAINTS in origin 6
7 The request from CARCONS PLC Contract: one year (240 working days) 1200 units for day to ITALTRAT SpA Monday Tuesday Wednesday Thursday Friday Saturday Sunday YES YES YES YES YES NO NO Delivery days from 8:00 to 20:00: constraint at destination 7
8 Problem We are a Shipping Company and CARCONS PLC ask us to formulate an offer for the yearly transport supply We have to evaluate the cost of transport alternatives
9 Product of CARCONS Boxes stacked on europallets (1200x800x150) (length x width x height) 150 mm 800 mm 1200 mm 9
10 Product of CARCONS 800 mm 1200 mm Considering the constraints in dimensions, each pallet can contain boxes (240 kg for pallet): 1200/48=25 pallets (for day) are required
11 Equipment The equipment for the transport must be appropriately chosen, considering also the layout of the pallets and, eventually, the items (container, semitrailer) to use. NOTE: remember that the boxes are stacked on europallets. 11
12 5600 mm Equipment: container 20 DRY VAN 1200 mm 800 mm layout of the pallets in the container 4800 mm 4800 mm 5867 mm 2350 mm
13 11200 mm mm Equipment: container 40 DRY VAN 800 mm layout of the pallets in the container 1200 mm mm mm mm mm 2350 mm
14 11200 mm mm Equipment: container 40 HIGH CUBE 800 mm layout of the pallets in the container 1200 mm mm mm mm mm 2350 mm
15 Equipment: semi-trailer A mm 1200 mm layout of the pallets in the semi-trailer mm mm mm 2400 mm Our choice in this example 15
16 The request: number of travels from CARCONS PLC Contract: one year (240 working days) 1200 units for day to ITALTRAT SpA The number of pallets to be delivery for year will be: units for day working days N pallets 6000 units for pallet 48 Assumption: in each travel, the semi-trailer is with full load The number of travels for year will be: N travels N pallets pallets for semi trailer 33 16
17 Shipping mode alternatives Road transport with tractor and semi-trailer (accompanied) Rail transport with semitrailer (not accompanied) Combined transport with semitrailer (accompanied, not-accompained) 17
18 Road transport: tractor and semi-trailer CARCONS PLC Zaragoza ITALTRAT SPA Pescara distance (km) v_media (km/h)
19 Initializing the process CARCONS must send a quantity of semi-finished products to ITALTRAT in advance. In this example, we suppose that CARCONS, sent in advance 2 semi-trailers (66 pallets) of semi-finished products ASSUMPTION: to deliver the required amount of semi-finished, we assume to made 5 travels for week
20 Road transport: tractor and semi-trailer Scheduling the travels Departure from Zaragoza Arrival to Pescara Operational time: Semi-finished, finished Arrival to Zaragoza Departure from Pescara 20
21 Regolamento CE - 15/03/ n. 561 Tempi di guida Articolo 6, comma 1. Il periodo di guida giornaliero non deve superare 9 ore. Il periodo di guida giornaliero può tuttavia essere esteso fino a 10 ore, non più di due volte nell'arco della settimana. Articolo 7 Dopo un periodo di guida di quattro ore e mezza, il conducente osserva un'interruzione di almeno 45 minuti consecutivi, a meno che non inizi un periodo di riposo. Questa interruzione può essere sostituita da un'interruzione di almeno 15 minuti, seguita da un'interruzione di almeno 30 minuti.
22 DIRETTIVA 2002/15/CE Orario di lavoro, comprende: il tempo occorrente per le operazioni di autotrasporto: 1) la guida; 2) il carico e lo scarico; 3) la pulizia e la manutenzione tecnica del veicolo; 4) ogni altra operazione legata alla sicurezza del veicolo, del carico, la sorveglianza, le formalità amministrative ecc. i periodi di tempo durante i quali il lavoratore mobile non può disporre liberamente del proprio tempo e deve rimanere sul posto di lavoro, pronto a svolgere il suo lavoro normale, occupato in compiti connessi all'attività di servizio (per esempio, i periodi di attesa per carico e scarico)
23 Road transport: tractor and semi-trailer Time return trip Legend Driver 1 Driver 2 Break The trace of a vehicle starting from Zaragoza Monday at 8:00 and arriving at Pescara Tuesday at 18:45 in order to can unloading and have time for operations. Note 1: the travel is designed so that the arrival is between 8:00 and 20:00 Note 2: the choice to start at 8:00 am is just an example, other times are 23 possible (if compatible with the constraint at destination)
24 Road transport: tractor and semi-trailer Time Drivers Travel time (h) Stop time (h) Operational time (h) Total time (h) CARCONS PLC Road travel time (with a mean speedzaragoza of 60 km/h) 0.75 h every 4.5 h (*) Barcelona Civitavecchia Operational time ITALTRAT SPA Pescara (*) -Regolamento CE - 15/03/ n
25 Road transport: tractor and semi-trailer Time at CALTRANS To perform the request service, a number of weekly travels are needed. Travel 1 Travel 2 Travel 3 Travel 4 Travel 5 Minimum equipment: 6 tractors, 7 semitrailers Minimum crew: 14 drivers The travel must be designed so that loading and unloading is from Monday to Friday between 8:00 and 20:00 25
26 Road transport: tractor and semi-trailer Annual Fixed Costs Fixed costs euro/year Depreciation Tractor Finance 705 Insurance Total Depreciation Semi-trailer Finance 235 Insurance Total Driver Taxes Allowances Total
27 Road transport: tractor and semi-trailer Annual Fixed Costs Drivers [ ] Tractor and semitrailer [ ] Depreciation Finance Insurance Total [ ] * * * * * 235 6* *
28 Road transport: tractor and semi-trailer Variable costs Variable operational costs euro/km Fuel 0.33 Tyres 0.06 Maintenance 0.02 Repairs 0.03 Total direct operational costs 0.44 Annual Variable costs = N travels * travelled km * unit cost= 2*182*1296*0.44=
29 Road transport: tractor and semi-trailer Tolls Tolls ( ) Zaragoza-Barcellona Barcellona-French Ventimiglia- French border Pescara Tolls( /year) = =2*182*( ) =
30 Road transport: tractor and semi-trailer Total Annual Cost Fixed costs Variable costs Tolls Total cost ( ) ( ) ( ) ( ) Depend on travelled distance Takes into account the presence of a second driver Highways tolls 30
31 Combined transport: road-sea
32 Combined transport: road-sea CARCONS PLC Zaragoza Barcelona Civitavecchia ITALTRAT SPA 32
33 Combined transport: road-sea ITALTRAT SPA CARCONS PLC Zaragoza Barcelona Civitavecchia Pescara Assumption: the transport is accompanied 33
34 Combined transport: road-sea Crossing by sea Access by road Egress by road time cost time cost time cost distance distance distance 34
35 Combined transport: road-sea Annual fixed costs Drivers [ ] Tractor and semitrailer [ ] Depreciation Finance Insurance Total [ ] * * * * * 235 6* * Assumption: one driver for travel 35
36 Combined transport: road-sea Access by road Crossing by sea Access by road Egress by road time cost distance cost time cost time 36
37 Combined transport: road-sea Access by road: Time CARCONS PLC Zaragoza distance (km) v_media ITALTRAT (km/h) SPA Barcelona Civitavecchia Pescara
38 Combined transport: road-sea Access by road: Time Travel time Operational time Total time Drivers (h) (h) (h) Road travel time (with a mean speed of 60 km/h) time for embark the vehicle 38
39 Combined transport: road-sea Access by road : variable costs Variable operational costs /km Fuel 0.33 Tyres 0.06 Maintenance 0.02 Repairs 0.03 Total direct operational costs 0.44 Annual Variable costs = N travels * travelled km * unit cost= 2*182*300*0.44=
40 Combined transport: road-sea Access by road: tolls Tolls ( ) Zaragoza-Barcellona Tolls( /year) = =2*182*32.15 =
41 Combined transport: road-sea Crossing by sea Access by road Egress by road time cost time cost distance time cost distance 41
42 Combined transport: road-sea Egress by road: Time CARCONS PLC Zaragoza distance (km) v_media ITALTRAT (km/h) SPA Barcelona Civitavecchia Pescara
43 Combined transport: road-sea Egress by road: Time Travel time Operational time Total time Drivers (h) (h) (h) Road travel time (with a mean speed of 60 km/h) time for Load/unload 43
44 Combined transport: road-sea Egress by road : variable costs Variable operational costs /km Fuel 0.33 Tyres 0.06 Maintenance 0.02 Repairs 0.03 Total direct operational costs 0.44 Annual Variable costs = N travels * travelled km * unit cost= 2*182*290*0.44=
45 Combined transport: road-sea Egress by road : tolls Tolls ( ) Civitavecchia-Pescara Tolls( /year) = =2*182*54.40 =
46 Combined transport: road-sea Crossing by sea Crossing by sea Access by road Egress by road time cost time cost distance cost time 46
47 Combined transport: road-sea Crossing by sea: time 909 NM = km 47
48 Combined transport: road-sea Crossing by sea: time and fare From To Crossing time Crossing Cost ETD ETA (Barcellona) (Civitavecchia) (h) ( ) Monday Tuesday 22:15 18: Tuesday Wednesday 22:15 18: Wednesday Thursday 22:15 18: Thursday Friday 22:15 18: Friday Saturday 22:15 18: Saturday Sunday 22:15 18: Sunday Monday 22:15 18: ETD: Estimated Time of Departure ETA: Estimated Time of Arrival 48
49 Combined transport: road-sea Crossing by sea-barcelona-civitavecchia: time and cost From fare From (Barcelona) To (Civitavecchia) ETD ETA Crossing time (h) Embark disembark (h) Crossing Cost ( ) Total cost ( ) Monday Tuesday 22:15 18: Tuesday Wednesday 22:15 18: Wednesday Thursday 22:15 18: Thursday Friday 22:15 18: Friday Saturday 22:15 18: Saturday Sunday 22:15 18: Sunday Monday 22:15 18:
50 Combined transport: road-sea Crossing by sea-civitavecchia-barcelona: time and cost From fare From (Civitavecchia) To (Barcelona) ETD ETA Crossing time (h) Embark disembark (h) Crossing Cost ( ) Total cost ( ) Monday Tuesday 22:15 18: Tuesday Wednesday 22:15 18: Wednesday Thursday 22:15 18: Thursday Friday 22:15 18: Friday Saturday 22:15 18: Saturday Sunday 22:15 18: Sunday Monday 22:15 18:
51 Combined transport: road-sea Travel time table From Zaragoza to Pescara From Pescara to Zaragoza Zaragoza Barcelona Civitavecchia Pescara Pescara Civitavecchia Barcelona Zaragoza Sunday Sunday Monday Tuesday Tuesday Tuesday Wednesday Thursday Monday Monday Tuesday Wednesday Wednesday Wednesday Thursday Friday Tuesday Tuesday Wednesday Thursday Thursday Thursday Friday Saturday Wednesday Wednesday Thursday Friday Friday Friday Saturday Sunday Thursday Thursday Friday Saturday Saturday Saturday Sunday Monday Friday Friday Saturday Sunday Sunday Sunday Monday Tuesday Saturday Saturday Sunday Monday Monday Monday Tuesday Wednesday The travel must be designed so that the arrival at Pescara is from Monday to Friday between 8:00 and 20:00 At arrival: Unload phase (semifinished product) Load phase (finished product)
52 NOTE: we suppose an initial phase where some pallets are carried from Zaragoza to Pescara Combined transport: road-sea Travel time table Distance (km) T: trailer ST: semi-trailer time Monday Tuesday Travel 1 Travel 2 Travel 3 Travel 4 Travel 5 Wednesday Friday Saturday Sunday Sunday Monday Wednesday Thursday Saturday Possible departures: Monday, Tuesday, Wednesday, Saturday, Sunday Possible arrivals: Friday, Saturday, Sunday, Wednesday, Thursday
53 Combined transport: road-sea Annual cost Forward trip Fare [ ] Number of trips Annual cost [ ] Return trip Fare [ ] Number of trips Annual cost [ ] Monday Friday Tuesday Saturday Wednesday Sunday Saturday Wednesday Sunday Thursday Total
54 Combined transport: road-sea Crossing by sea Access by road Egress by road time cost time cost time cost km km 290 km 54
55 Combined transport: road-sea Total annual cost Fixed cost Road cost Sea cost Total cost ( ) ( ) ( ) ( ) Variable cost + tolls (access and egress) ( )+ + ( ) From fare
56 cost Comparison (annual) Road Combined Total cost ( ) ,100,000 1,080,000 1,060,000 1,040,000 1,020,000 1,000, , , , , ,000 Road Difference: 9.25% Combined
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