Inbound freight consolidation : a simulation model to evaluate consolidation rules

Abstract

In logistics, freight can be consolidated over time (temporally) or over space (spatially). This thesis presents a simulation model to evaluate temporal and spatial consolidation rules. The model is the result of a research project to analyze freight consolidation options for a large industrial company. The research project focused on the company's freight imported from China to the US, and the model presented in the thesis is structured to represent a typical import logistics network. The results section of the thesis presents a method for evaluating consolidation rules. The results recommend temporal consolidation of two weeks at the origin port and temporal consolidation of less than one week at the factory for the company's shipments from China to the US. This consolidation policy offers total network cost savings of 24% over the base case, an immediate ship policy.