CHAPTER 2
Integrating Long-Term Transport Mode Selection into Overall Network Planning
The selection of modes and carriers to serve the transport lanes of a supply chain network has a significant impact on the operations and overall requirements of a network. For example, a firm’s decision regarding whether to utilize air or ocean transport to replenish inventory between a supplying plant and a receiving distribution center (DC) located on different continents (e.g., Asia and Europe) will dramatically impact the inventory investment requirements and annual inventory carrying costs of the firm. Therefore, a firm’s transportation mode choice selection methodology must integrate inventory requirements and costs into the decision making process. ...
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