Inventory logistics cost analysis model for the proposed EU intermodal loading unit -- A business case

Article type: Research Article

Authors: Kumar, Sameer

Affiliations: Opus College of Business, University of St. Thomas, 1000 LaSalle Avenue, Mail # TMH 343, Minneapolis, MN 55403-2005, USA. Tel.: +1 651 962 4350; E-mail: skumar@stthomas.edu

Abstract: This study focuses on the new initiative of the European Union (EU) which deals with simplifying the intermodal product shipment approach that may lead to improvement in the available transportation logistics infrastructure. The analysis involves determining the significance in the difference between the mean total costs in using a motor carrier, an intermodal platform, or the new intermodal loading unit (ILU). The study found a clear difference between the mean total costs for a motor carrier, a regular intermodal transportation and the use of the new ILU. Sensitivity analysis showed that the regular intermodal transportation is less competitive than the new ILU. The study provides rationale for the transportation industry to more closely examine the benefits of complying with the new EU ILU standard.

Keywords: Intermodal loading unit, multimodal transportation, intermodal transportation, intermodal platforms, buffer stock, inventory in transit, logistics cost model

Journal: Information Knowledge Systems Management, vol. 7, no. 3, pp. 335-355, 2008