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Transp&Supply Chain Sys

by: Maryse Thiel

Transp&Supply Chain Sys ISYE 6203

Maryse Thiel

GPA 3.82

Alan Erera

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Alan Erera
Class Notes
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This 0 page Class Notes was uploaded by Maryse Thiel on Monday November 2, 2015. The Class Notes belongs to ISYE 6203 at Georgia Institute of Technology - Main Campus taught by Alan Erera in Fall. Since its upload, it has received 13 views. For similar materials see /class/234191/isye-6203-georgia-institute-of-technology-main-campus in Industrial Engineering at Georgia Institute of Technology - Main Campus.


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Date Created: 11/02/15
lSyE 6203 Transportation and Supply Chain Systems Logistics Glossary Shipperconsignor An individual or rm that sends freight A freight originator Consignee An individual or rm to whom freight is shipped A freight receiver Carrier A rm that provides transportation services typically owning and operating transporta tion equipment Examples include trucking company railroad airline steamship line parcelexpress company Freight bill of Zading freight bill A document providing a binding contract between a shipper and a carrier for the trans portation of freight specifying the obligations of both parties Serves as a receipt of freight by the carrier for the shipper Usually designates the consignee and the FOB point FOB free on board point Point at which ownership of freight changes hands from shipper to consignee FOB origin indicates that consignee owns the goods in transit FOB destination indicates that shipper owns goods in transit Owner of goods in transit is liable for loss and damage to freight and thus should provide insurance Freight FOB terms of sale Indicates 1 Who arranges for transport and carrier 2 Who pays for transport 3 Wherewhen does title ownership of goods transfer from seller to buyer FOB point Freight charges collect prepaid prepaid and charged back Collect Buyer pays the freight charges Prepaid seller pays Prepaid and charged back seller prepays bears bills buyer for the charges Examples 1 FOB origin freight collect consignee pays freight charges and owns goods in tran sit 2 FOB destination freight prepaid shipper pays freight charges and owns goods in transit ISyE 6203 Logistics Glossary 2 3 FOB destination freight prepaid and charged back shipper owns goods in transit pays for freight but bills consignee for the charges Loss and damage Loss or damage of freight shipments while in transit or in a carrier operated ware house Terms for the handling of claims are usually stipulated in the freight bill Ship persconsignees usually take out insurance against LampD with premiums a function of the value of goods shipped and the likelihood of LampD Private carrier Owned and operated by a shipper Usually refers to private trucking eets Compo nents include vehicle eet drivers maintenance equipment Often more expensive than contracting out but not always Can serve special needs fast high ontime reliability delivery special equipment special handling availability Examples Safeway grocery Of ce Depot of ce products Common carrier A for hire carrier providing transportation services to the general public Obligations to serve to deliver to charge reasonable rates to avoid discrimination Previously regulated in the United States most are now deregulated Examples Parcelexpress carriers United Parcel Service UPS FedEx LTL trucking Yellow Consolidated Freightways Roadway TL trucking Hunt Schneider Rail carrier Norfolk Southern Air carriers Delta Flying Tigers Ocean carrier SeaLand American President Lines APL Freight forwarder An agency that receives freight from a shipper and then arranges for transportation with one or more carriers for transport to the consignee Often used for international shipping Will usually consolidate freight from many shippers to obtain low large volume trans portation rates from carriers through a contract Often owns some pickup and delivery equipment uses to transport freight to from consolidation facilities Also provide other shipping services packaging temporary freight storage customs clearing Transportation broker An agency that obtains negotiated large volume transportation rates from carriers and resells this capacity to shippers Unlike freight forwarders will not handle freight and owns no pickup delivery equipment or storage facilities N V00 0 Nonvessel operating common carrier Owns no vessels ships but provides ocean ship ping freight forwarding services Provides consolidated negotiated rate services for ocean and inland water carriers Often will af liate with freight forwarders to provide pickup delivery other services Shippers association Not for pro t association of shippers using collective bargaining and freight consolidation to obtain lower high volume transportation rates similar to freight forwarding wo pro t ISyE 6203 Logistics Glossary 3 motive Avoids premium charges paid to forwarders Only non competitive shippers may associate due to monopoly restrictions Integrators Companies that provide door to door domestic and international air freight service Own and operate aircraft as well as ground delivery eets of trucks In contrast freight hauling airlines eg Delta Lufthansa typically do not provide door to door service Example UPS FedEx BAX Global Emery Worldwide 3PL A third party or contract logistics company A rm to which logistics services are out sourced Typically handles many of the following tasks purchasing inventory manage mentwarehousing transportation management order management Example Schnei der Logistics Ryder Logistics UPS Logistics Interline shipment Shipment moving from origin to destination via two or more carriers Occurs frequently in rail transportation for example each rail container moving from Atlanta to Los Angeles is moved interline why using for example CSX and Union Paci c with an interline junction in New Orleans Door to door Transportation service arrangement in which freight is moved from origin shipper through to ultimate destination consignee for a given rate Trucking companies typi cally offer door to door service Railroads do not unless the shipper and consignee both have rail sidings Brokers forwarders NVOCCs etc often package together door to door service through contracts with multiple carriers Consolidation Bringing together many small shipments often from different shippers into large ship ment quantities in order to take advantage of economies of scale in transportation costs In Uehicle consolidation is when a vehicle makes pickups from many customers and con solidates freight inside the vehicle Out of Uehicle consolidation occurs at a terminal facility shipments to a single customerregion are consolidated before shipment Terminal Transportation facility with one or more of the following roles H System access terminals are points at which freight enters and leaves the trans portation system 10 Freight consolidation distribution 9 Mode transfer freight may change from one mode to another for example rail to truck 4gt Vehicle transfer within a single mode freight may transfer from one vehicle to another ISyE 6203 Logistics Glossary 4 5 Storage and warehousing 6 Fleet maintenance Hub and spoke A transportation system design in which large hub terminals are used for freight con solidation Medium volume services serve the spoke to hub collection and hub to spoke distribution tasks Large volume services are operated in the hub to hub markets In most systems all outboundinbound freight for a spoke uses the same hub and thus larger shipment sizes are realized Many transportation systems oriented in this way Examples Delta airlines FedEx LTL and now ocean shipping Not TL however Cross dock Transportation terminal in which received items transferred directly from inbound to the outbound shipping dock with storage only occurring temporarily during unloading and loading No long term storage is provided Usually used only for vehicle transfers Often owned and operated by large shippers Examples Home Depot food service companies hub passenger airports TLFTL truckload full truckload A trucking industry term a truckload shipment is when the shipper contracts an entire truck for direct point to point service Truckload shipments are priced per mile within designated lanes regardless of the size of the shipment provided it ts weight cube within the vehicle Less expensive per unit weight shipped than LTL A truckload carrier is a trucking company specializing in point to point truckload shipments Examples include JB Hunt Schneider LTL less than truckload A trucking industry term a less than truckload LTL shipment is when a shipper con tracts for the transportation of freight that will not require an entire truck LTL ship ments are priced according to the weight of the freight its commodity class which generally determines its cubeweight ratio and mileage within designated lanes An LTL carrier specializes in LTL shipments and therefore typically operates a complex hub and spoke network with consolidationdeconsolidation points LTL carriers carry multiple shipments for different customers in single trucks Examples include Yellow Freight Consolidated Freightways Roadway Express Freight size Freight is most often measured by its weight and transportation vehicles of varying sizes typically have weight capacities that cannot be exceeded due to engineering or regulatory reasons Freight may also be measured by cube which generally refers to the volume of the freight A vehicle is said to cube out if it does not exceed its weight capacity but its volume is completely full FOL full container load ISyE 6203 Logistics Glossary 5 An ocean shipping and intermodal industry term a full container load shipment is when a shipper contracts for the transportation of an entire container The vast majority of intermodal and ocean freight is contracted in this manner Historically FCL also stands for full carload which is the primary business of all modern railroads and is the railroad equivalent of TL trucking LCL less than container load An ocean shipping and intermodal industry term LTL equivalent in container shipping Container freight stations at ports serve as consolidation and deconsolidation terminals Historically LCL also stands for less than carload Before the prominence of interstate trucking railroads offered less than carload LCL service but this business has largely disappeared Dead head A portion of a transportation trip in which no freight is conveyed an empty move Transportation equipment is often dead headed because of imbalances in supply and demand For example many more containers are shipped from Asia to North America than in reverse empty containers are therefore dead headed back to Asia Backhaul A freight movement in a direction or lane of secondary importance or light demand Backhauls are preferable to deadheads by transportation companies since revenue is generated In order to entice shippers to move goods in backhaul markets carriers may offer lower rates Intermodal Transportation that uses a specialized container that can be transferred from the vehicle of one mode to the vehicle of another a single freight bill is used for the shipment Example Ocean shipping containers which can be hauled by trucks on chassis railcars ocean vessels and barges Also UPS line haul vans these vans can be stacked onto railcars for long distance moves Containers chassis and vans trailers Standard trucking companies use vans or trailers to move standard dry goods These trailers consist of a storage box that is permanently attached to a set of wheels the set of wheels is often known as a truck confused yet7 Intermodal ocean containers are moved on the road by attaching them to a separate piece of equipment a chassis which is essentially a set of wheels on a lightweight frame Container A single rigid sealed reusable metal box in which merchandise is shipped by vessel truck or rail Container types include standard high cube hardtop open top at platform ventilated insulated refrigerated or bulk Usually 8 ft x 8 ft in width and height 20 to 55 ft long Specialized containers also exist for air transportation modes but are much smaller and cannot be directly transferred to truck or rail ISyE 6203 Logistics Glossary 6 Reefer A refrigerated container For long storage in transit or in ports must be plugged into a ship s power system or port s Temporary power units can be attached that last for 18 36 hours COFC Container on atcar A term used in intermodal transportation in which containers are stacked onto rail atcars for rail transportation No truck chassis is used and double stack cars are possible thus more containers can be carried by a shorter lighter train TOFCpiggyback Trailer on atcar A term used in intermodal transportation in which truck trailers or containerchassis combinations are placed directly onto rail atcars for the rail portion of the trip TOFC trains are generally heavier and longer per unit ton shipped but have the advantage that unloaded trailers can be moved out of the intermodal terminal without worrying about nding a chassis thus the equipment management issues are simpler Drayage Local trucking typically describing truck movement of containers and trailers to and from rail intermodal yards and to and from port facilities Pickup and delivery cartage Local hauling of freight Often the trucking service used for transferring freight from the shipper to a terminal or from a terminal to a consignee Switching Switching is a railroad term denoting the local movement of freight rail cars Rail cars are switched from the private siding of a shipper to the terminal or switched from the terminal to the private siding of the consignee Note a siding is a section of rail line that runs from a railroad s line into an industrial facility If an industry using rail shipping does not have a siding they will likely use 1 intermodal containers or 2 use a cartage service to transfer goods tofrom a rail terminal Longhaul Sometimes linehaul Terminal to terminal freight movements in transportation Such long distance moves are distinguished from local freight movements Detentiondemurmge Penalty charges assessed by a carrier to a shipper or consignee for holding transportation equipment ie trailers containers railcars longer than a stipulated time for loading or unloading Diversionreconsignment Diversion is a tactic used by shippers to change the destination consignee of freight while the goods are in transit The shipper will notify the carrier prior to the arrival of freight at the destination of the new consignee and the carrier will adjust the freight ISyE 6203 Logistics Glossary 7 routing accordingly Reconsignment is a similar concept except that the shipper noti es the carrier of the new consignee after the freight arrives at the destination but obviously before delivery unpacking Carriers impose extra charges for these services typically but they provide exibility to the shipper Transit privilegesstopo charges Carriers may allow cargo to be stopped in transit from initial origin to nal destination to be unloaded stored andor processed before reloading and nal shipment Extra charges are imposed for these transit privileges Stopoff charges are levied for when shippers request that a shipment may be partially loaded at several locations andor partially unloaded at several locations en route Postponement A deliberate delay in committing inventory to shipment by a shipper Usually shippers utilize postponement in order to consolidate freight into larger shipments that have a lower unit transportation cost Bulk cargo Cargo that is stowed loose on transportation vehicles in a tank or hold without speci c packaging and handled by pump scoop conveyor or shovel Examples grain coal petroleum chemicals Break bulk cargo Cargo in between bulk and containerized that must be handled piece by piece by termi nal workers stevedores Often stored in bags or boxes and stacked onto pallets Smaller lift equipment forklifts small cranes used than for containerized cargo but more labor intensive Palletskid A small platform 40x48 inches usually on which goods are placed for handling within a warehouse or a transportation vehicle such as a ship Good for grouping break bulk cargo for handling Dunnage Wood and packaging materials used to keep cargo in place inside a container or trans portation vehicle SK U Stock keeping unit A line item of inventory that is a different type or size of good Hundredwez39ghtCWT 100 pounds A common shipping weight unit Freight weight measures Short ton American 2000 lbs Long ton English 2240 lbs Metric ton 1000 kg 22046 lbs ISyE 6203 Logistics Glossary 8 Deadweight The number of long tons that a vessel can transport of cargo supplies and fuel It is the difference between the number of tons of water a vessel displaces light empty and the number of tons it displaces when submerged to the load line TEU Twenty foot equivalent unit Method of measuring vessel load or capacity in units of containers that are twenty feet long A 407 long container measures 2 TEUs Exam ple the maximum capacity for carrying 407 containers for a 3000 TEU vessel is 1500 containers it actually might be less Why FEU Forty foot equivalent unit Method of measuring vessel load or capacity in units of forty foot long containers Slot A place for a container onboard a container ship typically one TEU ts in a slot Liner shipping Liners are vessels sailing between speci ed ports on a regular schedule schedule is pub lished and available to the public Most large container shipping companies operate liner services Wamp shipping An ocean carrier company operating vessels not on regular runs or schedules They call at any port where cargo may be available Sometimes used for bulk cargo shipping Ocean conference Cartel of vessel operators operating between speci c trade areas Set cargo rates for liners between ports Alliance Group of airlines or ocean carriers who coordinate and cross list schedules and sell capacity on each other s ightsvoyages Container leasingrailcar leasing Some companies specialize in the business of owning transportation equipment contain ers or railcars and renting them out to shippers or carriers These companies often face signi cant equipment management problems Lo lo Lift on lift off Conventional container or cargo ships in which quay cranes are used to load and unload containers or generalized cargo Ro ro Roll OnRoll Off A method of ocean cargo service using a vessel with ramps which allows wheeled vehicles to be loaded and discharged without cranes


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