Design and evaluation of an integrated inventory and transportation system

This paper proposes the adoption of an integrated inventory and transportation system (IITS) to minimize the total costs of inventory and transportation. A non-linear programing is developed by analyzing transportation and inventory costs with one supplier and many retailers in the distribution environment. The paper compares the proposed model with the traditional approach in computing total costs with numerical data. The results indicate that the total costs can be optimized by adopting integrated programing rather than the traditional approach, along with achieving improved customer service levels. In particular, sensitivity analysis is applied to determine the performance of the IITS under various transportation costs, holding costs and shortage costs. It shows that the transportation cost per unit is most sensitive in the proposed model. In this situation, the IITS is more effective for cost saving when set-up cost, holding and shortage costs are high, but is less effective for situations involving high per-unit transportation costs.     

“Not just a taxi”? For-profit ridesharing,driver strategies,and VMT

The spread of GPS-based location services using smartphone applications has led to the rapid growth of new startups offering smartphone-enabled dispatch service for taxicabs, limousines, and ridesharing vehicles. This change in communicative technology has been accompanied by the creation of new categories of car service, particularly as drivers of limousines and private vehicles use the apps to provide on-demand service of a kind previously reserved for taxicabs. One of the most controversial new models of car service is for-profit ridesharing, which combines the for-profit model of taxi service with the overall traffic reduction goals of ridesharing. A preliminary attempt is here made at understanding how for-profit ridesharing compares to traditional taxicab and ridesharing models. Ethnographic interviews are drawn on to illustrate the range of motivations and strategies used by for-profit ridesharing drivers in San Francisco, California as they make use of the service. A range of driver strategies is identified, ranging from incidental, to part-time, to full-time driving. This makes possible a provisional account of the potential ecological impacts of the spread of this model of car service, based on the concept of taxicab efficiency, conceived as the ratio of shared versus unshared miles driven.     

Commentaries

Abstract

This paper surveys the technologies available for constructing a pervasive, national‐scale road pricing system. It defines the different types of road pricing, the methods by which a vehicle’s position can be determined, and then examines possible pricing regimes in the context of their technological requirements and implications. The issue of enforcement and the distribution of pricing policies are considered, and further complexities are outlined. An examination of the security aspects of such systems is made, focusing particularly on the need to ensure privacy using technological, rather than solely procedural, methods. The survey concludes that a pervasive, national‐scale deployment is unlikely to be technically achievable in the short‐term.     

The Impact of Travel Time Information on Travelers’ Learning under Uncertainty

In this work, laboratory experiment was conducted in order to evaluate the effect of feedback on decision-making under uncertainty, with and without provided information about travel times. We discuss the prediction of travelers’ response to uncertainty in two route–choice situations. In the first situation travelers are faced with a route–choice problem in which travel times are uncertain but some external information about routes’ travel times is provided. The second situation takes place in a more uncertain environment in which external information about travel times is not provided, and the travelers’ only source of information is their own experience. Experimental results are in conflict with the paradigm about traveler information systems: As a consequence of information, the propensity of travelers to minimize expected travel time is not necessarily increased. Providing travelers with static information about expected travel times reveals an increase in the heterogeneity of travelers’ choices and reduces the maximization rate.     

The dynamic relationships between paper petroleum refining and physical trade of crude oil into the United States

This article examines the relationship between refinery margins traded on paper using petroleum futures (the paper refinery) and the physical trade of crude oil into the US. Computations of a 3:2:1 crack spread were constructed using daily observations of second- and third-nearby unleaded gasoline and heating oil futures contracts traded on the New York Mercantile Exchange (NY MEX) and spot Brent crude oil prices. The crack spread represents the margin between the cost of crude oil feed stock today and the value of the products produced by a refinery in the future. Unit root tests on each of the time series found crack spreads to be stationary while crude oil imports were found to be non-stationary. A s the two series were found to be integrated of different order, cointegration analysis of the two series was not deemed appropriate. Instead, linear relationships between crack spreads and imports were examined using causality tests. It was found that the 2-month 3:2:1 crack spread Granger-causes crude oil imports and that this causality is unidirectional. The significance of these findings lies in the fact that other industries like tanker shipping derive their demand from the demand for, and trade in, petroleum. Crack spreads, therefore, can provide a leading indicator for short term developments in tanker demand. For a chartering manager who has ships on the spot market, crack spreads can help him/her anticipate demand developments and influence vessel deployment and chartering decisions.     

Some Thoughts on Flags of Convenience

The purpose of this article is to formulate the problem, to assess its magnitude, and at the same time to suggest the areas that must be investigated before any practical policy recommendations can be made.     

Route choice of cyclists in Zurich

This paper presents the first route choice model for bicyclists estimated from a large sample of GPS observations and overcomes the limitations inherent in the generally employed stated preference approach. It employs an improved mode detection algorithm for GPS post-processing to determine trips made by bicycle, which are map matched to an enriched street network. The alternatives are generated as a random sample from an exhaustive, but constrained search. Accounting for the similarity between the alternatives with the path-size factor the MNL estimates show that the elasticity with regards to trip length is nearly four times larger than that with respect to the share of bike paths. The elasticity with respect to the product of length and maximum gradient of the route is small. No other variable describing the routes had an impact. The heterogeneity of the cyclists is captured through interaction terms formulated on their average behaviour.