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The study for efficiency of the Inland Container Transportation

<Proposal>

Hee-jin Lee, Sang-oh Kang, Jae-young Park, Hoon Lee

15th November, 2006

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Contents

1. Background

2. Objective

3. Company Introduction

4. System description

5. Simulation Approach

6. Verification method of simulation

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Background

- Increase of import and export freight is an important problem in the container transportation

- Most of Single-trip and Round-trip Transportations are separated to each transportation type and not change.

- Increasing the Transporting distance and time Increasing the Transportation cost and the number of necessary vehicle

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Objective

Modeling for existing transportation system by using Arena

Finding a new solution (route) for improving the present system

-> Analyzing the results of present system and improved system

Combination of Single-trip and round-trip transportation

Using the rail transportation

Improving the present transportation system

Minimizing total distance and total time minimizing the total cost

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Company Introduction

- Company : CHUNIL Cargo Transportation Co., Ltd.

- Major business: home-delivery service

CY operation

steel and bulk transportation

- The number of truck : 150 (in Busan)

- Object of study : Inland Container Transportation

- Contents of object

managing the transportation orders of customers

which is linkage between national city and

busan (depot)

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System Description

Collect data(Orders)

Assign theOrder

Single-trip Transportation

Round-trip Transportation

Rail Transportation

Finish

1. Assign new order to rail transportation “only if train is not occupied”2. Combine the coverage route (round + round , round + single, single +single)3. Return , if there is no satisfied route ( in the combination step )

Transport

Return

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Simulation Approach

Data-Transporting time and distance

-Requirement time

-Order type : delivery, pick-up

-Trip type : single (delivery, pick-up) , round (D + P , P + D)

-Destination ( 11 kinds of cities )

Assumption-The number of vehicles are infinite

-Container size :40 Ft ( each containers use only 1 truck )

-Container type : Dry container

-Every vehicle depart from busan and go back to busan

-Regard every CY and Port as just one station

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Verification method of simulation

Verifying Data

= Total transportation cost

( Vehicle transportation cost + Rail transportation cost )

I. Vehicle Transportation cost (each vehicles)

I . Company’s charge (return) -

[Customer’s Fare (from busan to destination) + Company’s charge (return)]*10%

-> Driver’s profit

( Increasing the number of vehicles -> Increasing the cost )

II. Each fare is depends on the distance between cities

III. Each fare can be changed by “ Trip type “

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Verification method of simulation (cont.)

From busan Kwang- yang Ok-chun Bu-gok

Distance 232 km 257 km 410 km

Fare (won) 674 674 674

Type rate (won) 674* 74% 674*74% 674*74%

-Rail Transportation I. There are 4 kinds of station ( busan, kwang-yang, ok-chun, bu-gok )

II. This charge depends on the “ trip type “-- Distance ( classified by each station ) * Type rate (empty container)-- Distance ( classified by each station ) * Fare (full container)

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