A simulation model called Trade and Transportation Multinetworks (TTMNet), constructed for the purpose of studying the effects of highly developed information technologies and logistic strategies (e.g., electronic commerce and real-time information) on freight transportation, is described. TTMNet is formulated as a multilevel product supply chain system that integrates the financial, informational, logistical, and physical aspects of transportation networks and allows interactions between each of these networks. Several simulators, including a freight traffic simulator, a supply chain decision-making simulator, and a pseudo-real-time information simulator, are involved. The freight traffic simulation is the focus of the present study. As part of this simulator, a learning model is set up to help decision makers estimate transportation costs on the basis of past experiences. Given the stochastic nature of these transportation costs and of the freight demands simulated by the system, the route for an origin-destination shipment may not remain optimal during a trip and may change along the way. A vehicle redirection procedure that handles this is presented. A numerical example is designed to compare a set of freight movements under two scenarios, one supported by and the other not supported by pseudo-real-time information on traffic conditions.
Abstract