The study for efficiency of the Inland Container Transportation

1. The study for efficiency of the Inland Container Transportation <Proposal> Hee-jin Lee, Sang-oh Kang, Jae-young Park, Hoon Lee 15th November, 2006

2. Contents 1. Background 2. Objective 3. Company Introduction 4. System description 5. Simulation Approach 6. Verification method of simulation

3. Background - Increase of import and export freight is an important problem in the container transportation - Increasing the Transporting distance and time Increasing the Transportation cost and the number of necessary vehicle - Most of Single-trip and Round-trip Transportationsare separated to each transportation type and not change.

4. 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

5. 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)

6. System Description Single-trip Transportation Collect data (Orders) Assign the Order Transport Round-trip Transportation Rail Transportation Return • 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 ) Finish

7. 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

8. 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 “

9. Verification method of simulation (cont.) -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)

10. Q & A