Hidayati, L.N.N., De Jong, G. orcid.org/0000-0003-3405-6523 and Whiteing, A. (2024) Logistics Model for Indonesia’s National Freight Model System: From a Deterministic to a Stochastic Framework. Transportation Research Record. ISSN 0361-1981
Abstract
One of the components of a new model, called INTRAMOD, for Indonesia’s domestic freight transport is the logistics model. The logistics model describes shipment size choice and the choice between five different transport chain alternatives involving four main modes: truck, train, vessel and plane. This paper presents the work to forecast the disaggregate transport chain and shipment size choices for Indonesia’s domestic shipments by applying a deterministic and a stochastic approach. Using a standard economic order quantity (EOQ) model with a consolidation assumption, a deterministic approach is used to determine the transport chain and shipment size, minimizing total logistics cost. As an alternative for this, a stochastic model aims to improve the logistics choice modelling by employing data on the manufacturer's revealed preferences (RP) and stated preferences (SP) regarding only the transport chain choice. The chosen specification for the stochastic approach is utilizing the multinomial logit model. Using the demand elasticities for all alternatives with respect to changes in its transport cost, a comparison will be made between the two approaches. In addition, it is concluded that the deterministic model is susceptible to sticky and flip flop behaviors. In contrast, this characteristic is absent from the stochastic approach.
Metadata
Item Type: | Article |
---|---|
Authors/Creators: |
|
Copyright, Publisher and Additional Information: | © The Author(s) 2024. This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access page (https://us.sagepub.com/en-us/nam/open-access-at-sage). |
Keywords: | freight systems; freight planning and logistics; freight model/modeling |
Dates: |
|
Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Environment (Leeds) > Institute for Transport Studies (Leeds) > ITS: Economics and Discrete Choice (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 15 Aug 2024 09:36 |
Last Modified: | 23 Sep 2024 10:26 |
Status: | Published online |
Publisher: | SAGE |
Identification Number: | 10.1177/03611981241270181 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:216131 |