Short Sea Shipping. Case study

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1 Short Sea Shipping Case study

2 What is? Short sea shipping SSS (Ro-Ro) Short sea shipping (SSS) is the maritime transport of goods over relatively short distances. In the context of European Union (EU) transport statistics it is defined as maritime transport of goods between ports in the EU-27 on one hand, and ports situated in geographical Europe, on the Mediterranean and Black Seas on the other hand. 2

3 A case study Company A receives an order for mass-production of a product by Company C. The goods must be delivered from Monday to Friday (from 8:00 to 20:00) Company A needs a partner to finalize the production Company B finalises the production of Company A Objective: Design the transport from Company A to Company B considering a set of operational constraints because we are a shipping company and Company A asked for an offer. 3

4 The actors CARCONS PLC Company A that makes a specific product (i.e. components for cars) ITALTRAT SPA Company B that finalises CARCONS products Multinational Company C that uses the finalised CARCONS products 4

5 The request from CARCONS PLC Contract: one year (240 working days) 1200 units for day to A multinational Monday Tuesday Wednesday Thursday Friday Saturday Sunday YES YES YES YES YES NO NO Delivery days from 8:00 to 20:00 5

6 Problem We are a Shipping Company and CARCONS PLC ask us to formulate an offer for the yearly transport supply We have to evaluate the cost of transport alternatives

7 Problem Some geographical information CARCONS PLC MULTINATIONAL Zaragoza ITALTRAT SPA Pescara 7

8 Location information Location of company A Location of company C CARCONS PLC In the same park distance not significant Multinational factory industrial park 8

9 Problem The product flow 1. CARCONS PLC sends the products to ITALTRAT SPA 2. ITALTRAT SPA finalizes the products in two days and sends it to CARCONS PLC 3. CARCONS PLC receives the finished products 4. The products are ready to be delivered to MULTINATIONAL 3 CARCONS PLC 1 4 MULTINATIONAL 2 ITALTRAT SPA Needed two days to finalize the product 9

10 Product of CARCONS The units are packed in reusable parallelepiped boxes product 25 Box dimensions (cm) (height) Box weight: 5 kg 40 (length) 30 (width) 10

11 Product of CARCONS Boxes stacked on europallets (1200x800x150) (length x width x height) 150 mm 800 mm 1200 mm 11

12 Product of CARCONS Considering a box with dimension of 300x400 mm (width x length), each stack can contain up to eight boxes mm 12 12

13 Product of CARCONS Up to 8 layers of boxes for each europallet Box layer At most 1600 mm Plywood sheet Box layer Europallet Considering a box with a height of 250 mm, each stack can contain up to six boxes 13

14 Product of CARCONS BUT: the height constraint for the pallet (1800 mm), limit the number of stacked layers on each pallet Box layer Up to 1600 mm Plywood sheet Box layer Europallet 14

15 Product of CARCONS BUT: the height constraint for the pallet (1600 mm), limit the number of stacked layers on each pallet Considering a box with a height of 250 mm, each stack can contain up to six boxes because between two rows there is a fleet of plywood with an height of 6 mm mm 15

16 Product of CARCONS 800 mm 1200 mm Considering the constraints in dimensions, each pallet can contain boxes (240 kg for pallet): 25 pallets are required for order execution.

17 Equipment The equipment for the transport must be appropriately chosen, considering also the layout of the pallets and, eventually, the items (container, semitrailer) to use. NOTE: remember that the boxes are stacked on europallets. 17

18 11200 mm mm Equipment: container 40 DRY VAN 800 mm layout of the pallets in the container 1200 mm mm mm mm mm 2350 mm

19 11200 mm mm Equipment: container 40 HIGH CUBE 800 mm layout of the pallets in the container 1200 mm mm mm mm mm 2350 mm

20 5600 mm Equipment: container 20 DRY VAN 1200 mm 800 mm layout of the pallets in the container 4800 mm 4800 mm 5867 mm 2350 mm

21 Equipment: semi-trailer A mm 1200 mm layout of the pallets in the semi-trailer mm mm mm 2400 mm Our choice in this example 21

22 Road transport: tractor and semi-trailer CARCONS PLC Zaragoza ITALTRAT SPA Pescara 22

23 Road transport: tractor and semi-trailer Time distance (km) v_media (km/h) 1796,00 60,00 ITALTRAT SPA CARCONS PLC Barcelona Zaragoza Civitavecchia Pescara 23

24 Road transport: tractor and semi-trailer Time Operational Travel time Stop time Total time Drivers time (h) (h) (h) (h) 2 29,93 4,50 4,00ITALTRAT 38,43 SPA CARCONS PLC Zaragoza Barcelona 0,75 h every 4,5 h Civitavecchia Pescara Road travel time (with a mean speed of 60 km/h) time for load/unload the vehicle 24

25 Road transport: tractor and semi-trailer Initializing the process To perform the delivery service, Company A needs to have into their warehouse a quantity of products in order to satisfy the requests of Company C. Hence, Company A must send a quantity of semi-finished products at Company B in advance. In this example, we suppose that Company A sends in advance 2 semi-trailers (66 pallets) of semi-finished products

26 Road transport: tractor and semi-trailer Scheduling the travels Departure from Zaragoza Arrival to Pescara Operational time Arrival to Zaragoza Departure from Pescara 26

27 Road transport: tractor and semi-trailer Time constraints from to CARCONS PLC ITALTRAT Monday Tuesday Wednesday Thursday Friday Saturday Sunday YES YES YES YES YES NO NO Delivery days from 8:00 to 20:00 27

28 Road transport: tractor and semi-trailer Time return trip Legend Driver 1 Driver 2 Break The trace of a vehicle starting from Zaragoza Monday at 5:34 and arriving at Pescara Tuesday at 16:00 in order to can unloading and have time for loading. Note 1: the travel is designed so that the arrival is between 8:00 and 20:00 Note 2: the choice to start at 5:34 am is just an example, other times are 28 possible (if compatible with the constraint at destination)

29 Road transport: tractor and semi-trailer Time To perform the request service, a number of weekly travels are needed. Assumption: a travel every 24 hours Travel 1 Travel 2 Travel 3 Travel 4 Travel 5 T: trailer ST: semi-trailer The travel must be designed so that the arrival is from Monday to Friday between 8:00 and 20:00 Minimum equipment: 3 tractors, 4 semitrailers 29

30 Road transport: tractor and semi-trailer Time An example of weekly use of tractors and semi-trailers Sunday Monday Tuesday Wednesday Thursday Friday Saturday AVAILABLE TRACTORS AVAILABLE SEMI- TRACTORS T1, T2, T3 T2, T3 T3 T1 T2 T3 T1 ST1, ST2, ST3, ST4 ST3, ST4 ST4 ST1 ST2 ST3 ST2,ST3,ST4 LEAVING (START FROM ZARAGOZA) T1+ST1 T2+ST2 T3+ST3 T1+ST4 T2+ST1 T3+ST2 T1+ST3 T: trailer, ST: semi-trailer 30

31 Road transport: tractor and semi-trailer Time As long term solution, to perform the request service, a number of weekly travels are needed. Assumption: a travel every 24 hours Travel 1 Travel 2 Travel 3 Travel 4 Travel 5 The travel must be designed so that the arrival is from Monday to Friday between 8:00 and 20:00 Note: the choice to start at 5:34 am is just an example, other times are possible (if compatible with the constraint at destination) NOTE: we suppose an initial phase where some pallets are carried from 31 Zaragoza to Pescara

32 Road transport: tractor and semi-trailer Time To perform the request service, a number of weekly travels are needed. Assumption: a travel every 24 hours Travel 1 Travel 2 Travel 3 Travel 4 Travel 5 The travel must be designed so that the arrival is from Monday to Friday between 8:00 and 20:00 At arrival: Unload phase (semifinished product) Load phase (finished product) 32

33 Road transport: tractor and semi-trailer Fixed costs 33

34 Road transport: tractor and semi-trailer Fixed costs Fixed costs ( /h) 5,57 + 0,37 + 2,84 +12,50 + 0,4 + 6,15 = 27,83 34

35 Road transport: tractor and semi-trailer Fixed costs Fixed costs (with 2 drivers) Variable costs Tolls Total cost Fixed costs ( /h) 5,57 + 0,37 + 2,84 +12,50 + 0,4 + 6,15 = 27,83 Total time (h) 38,43 (27,83 * 38,43) + 12,50 * 38,43 = 1550,02 for second driver 35

36 Road transport: tractor and semi-trailer Total Cost Fixed costs (with 2 drivers) 1550,02 Variable costs Tolls Total cost CARCONS PLC Zaragoza Barcelona Civitavecchia ITALTRAT SPA Pescara

37 Road transport: tractor and semi-trailer Variable costs Variable operational costs /km Fuel 0,33 Tyres 0,06 Maintenance 0,02 Repairs 0,03 Total annual direct operational costs 0,44 37

38 Road transport: tractor and semi-trailer Fixed costs Fixed costs (with 2 drivers) 1550,02 Variable costs Tolls Total cost Variable costs ( /km) 0,33 + 0,06 + 0,02 +0,06 = 0,44 distance (km) 1796,00 (1796 * 0,44) = 790,24 38

39 Road transport: tractor and semi-trailer Total Cost Fixed costs (with 2 drivers) Variable costs 1550,02 790,24 Tolls Total cost CARCONS PLC Zaragoza Barcelona Civitavecchia ITALTRAT SPA Pescara

40 Road transport: tractor and semi-trailer Tolls Tolls Zaragoza-Barcellona Barcellona-French Ventimiglia- French border Pescara 32,15 14,40 167,30 153,00 CARCONS PLC Zaragoza Barcelona Civitavecchia ITALTRAT SPA Pescara 40

41 Road transport: tractor and semi-trailer Fixed costs Fixed costs (with 2 drivers) Variable costs 1550,02 790,24 Tolls Total cost Tolls 32, , , ,00 = 366,85 Tolls Zaragoza-Barcellona Barcellona-French Ventimiglia- French border Pescara 32,15 14,40 167,30 153,00 41

42 Road transport: tractor and semi-trailer Total Cost Fixed costs (without driver) Variable costs Tolls 1550,02 790,24 366,85 Total cost CARCONS PLC Zaragoza Barcelona Civitavecchia ITALTRAT SPA Pescara

43 Road transport: tractor and semi-trailer Total Cost Fixed costs (with 2 drivers) Variable costs Tolls Total cost 1550,02 790,24 366, ,11 Depend on travelled distance CARCONS PLC takes into account the presence of a Zaragoza second driver Barcelona Civitavecchia Highways tolls ITALTRAT SPA Pescara 43

44 Warehouses management The travels must be designed so that: Company A has into the warehouse the quantity of pallets needed for at least one delivery Company B has into the warehouse the quantity of finished product for a travel Travel Pallets for travel Pallets to be delivered to MULTINATIONAL Stockpile at Company A Stockpile at Company B (Company C) date 0/1 Number of pallets Delivered pallets stockpile stockpile 0: no travel 1: travel Number of pallets of finished product Delivered pallets (daily, excluding Saturday and Sunday) Pallets into the warehouse of company A Pallets into the warehouse of company B 44

45 Warehouses management Example of some travels Travel Pallets for travel Pallets to be delivered to MULTINATIONAL Stockpile at Company A Stockpile at Company B (Company C) lunedì 1 maggio martedì 2 maggio mercoledì 3 maggio giovedì 4 maggio venerdì 5 maggio sabato 6 maggio domenica 7 maggio lunedì 8 maggio martedì 9 maggio mercoledì 10 maggio giovedì 11 maggio venerdì 12 maggio sabato 13 maggio

46 Warehouses management Example of a week plan lunedì 1 maggio 2017 martedì 2 maggio 2017 mercoledì 3 maggio 2017 giovedì 4 maggio 2017 venerdì 5 maggio 2017 sabato 6 maggio 2017 domenica 7 maggio 2017 Travel Pallets for travel Pallets to be delivered to MULTINATIONAL (Company C) Stockpile at Company A Stockpile at Company B Day Travel cost Production Delivery Monday Tuesday Wednesday 5.414, Thursday 5.414, Friday 5.414, Saturday Sunday 5.414, Total ,

47 Pallets Warehouses management Warehouse stockpile at Company A Stockpile trend (at Company A) Pallets of finished product (at Company B) Pallets to be delivered (at Company C) 47 Day

48 Road transport: tractor and semi-trailer Annual budget Working days Deliveries (pallets/day) Production (pallets/day) Number of travel pallets Annual cost: 2707,11 *2* 182 = ,04 48

49 Short Sea Shipping Case study

50 Combined transport: road-sea CARCONS PLC Zaragoza Barcelona Civitavecchia ITALTRAT SPA 50

51 Combined transport: road-sea ITALTRAT SPA CARCONS PLC Zaragoza Barcelona Civitavecchia Pescara Assumption: the transport is accompanied 51

52 Combined transport: road-sea Crossing by sea Access by road Egress by road time cost time cost time cost distance distance distance 52

53 Combined transport: road-sea Access by road Crossing by sea Access by road Egress by road time cost distance cost time cost time 53

54 Combined transport: road-sea Access by road: Time CARCONS PLC Zaragoza distance (km) v_media ITALTRAT (km/h) SPA Barcelona Civitavecchia Pescara 300,00 60,00 54

55 Combined transport: road-sea Access by road: Time Travel time Operational time Total time Drivers (h) (h) (h) 1 5,00 2,00 7,00 Road travel time (with a mean speed of 60 km/h) time for Load the vehicle 55

56 Combined transport: road-sea Road: fixed costs 56

57 Combined transport: road-sea Road: fixed costs Road: fixed costs ( /h) 5,57 + 0,37 + 2,84 +12,50 + 0,4 + 6,15 = 27,83 57

58 Combined transport: road-sea Access by road: fixed costs Fixed costs Variable costs Tolls Total cost Fixed costs ( /h) 5,57 + 0,37 + 2,84 +12,50 + 0,4 + 6,15 = 27,83 Total time (h) 7,00 7,00 * 27,83 = 194,81 58

59 Combined transport: road-sea Access by road : fixed costs Fixed costs 194,81 Variable costs Tolls Total cost 59

60 Combined transport: road-sea Access by road : variable costs Variable operational costs /km Fuel 0,33 Tyres 0,06 Maintenance 0,02 Repairs 0,03 Total annual direct operational costs 0,44 60

61 Combined transport: road-sea Access by road : variable costs Fixed costs 194,81 Variable costs Tolls Total cost Variable costs ( /km) 0,33 + 0,06 + 0,02 +0,06 = 0,44 distance (km) 300,00 (300,00 * 0,44) = 132,00 61

62 Combined transport: road-sea Access by road : fixed costs Fixed costs Variable costs 194,81 132,00 Tolls Total cost 62

63 Combined transport: road-sea Access by road : fixed costs Fixed costs Variable costs 194,81 132,00 Tolls Total cost Tolls Zaragoza-Barcellona 32,15 63

64 Combined transport: road-sea Access by road : fixed costs Fixed costs Variable costs Tolls 194,81 132,00 32,15 Total cost 64

65 Combined transport: road-sea Access by road : fixed costs Fixed costs Variable costs Tolls Total cost 194,81 132,00 32,15 358,96 65

66 Combined transport: road-sea Crossing by sea Access by road Egress by road 5,00 h 358,96 time cost time cost 300,00 km distance distance 66

67 Combined transport: road-sea Crossing by sea Crossing by sea Access by road Egress by road time cost time cost distance cost time 67

68 Combined transport: road-sea Crossing by sea: time 909 NM = 1683,5 km 68

69 Combined transport: road-sea Crossing by sea: time Departure (Barcellona) Arrival (Civitavecchia) ETD ETA Monday Tuesday 22:15 18:15 Tuesday Wednesday 22:15 18:45 Wednesday Thursday 22:15 18:15 Thursday Friday 22:15 18:45 Friday Saturday 22:15 18:15 Saturday Sunday 22:15 18:45 Sunday Monday 22:15 18:15 69

70 Combined transport: road-sea Crossing by sea: time Departure (Civitavecchia) Arrival (Barcellona) ETD ETA Monday Tuesday 22:15 18:15 Tuesday Wednesday 22:15 18:45 Wednesday Thursday 22:15 18:15 Thursday Friday 22:15 18:45 Friday Saturday 22:15 18:15 Saturday Sunday 22:15 18:45 Sunday Monday 22:15 18:15 70

71 Combined transport: road-sea Crossing by sea: cost

72 Combined transport: road-sea Crossing by sea: time and fare From To Crossing time Crossing Cost ETD ETA (Barcellona) (Civitavecchia) (h) Monday Tuesday 22:15 18:15 20,50 874,00 Tuesday Wednesday 22:15 18:45 20, ,00 Wednesday Thursday 22:15 18:15 20, ,00 Thursday Friday 22:15 18:45 20,00 914,00 Friday Saturday 22:15 18:15 20, ,00 Saturday Sunday 22:15 18:45 20, ,00 Sunday Monday 22:15 18:15 20, ,00 ETD: Estimated Time of Departure ETA: Estimated Time of Arrival 72

73 Combined transport: road-sea Crossing by sea: time and fare From To Crossing time Crossing Cost ETD ETA Civitavecchia) (Barcellona) (h) Monday Tuesday 22:15 18:15 20,50 874,00 Tuesday Wednesday 22:15 18:45 20, ,00 Wednesday Thursday 22:15 18:15 20, ,00 Thursday Friday 22:15 18:45 20,00 914,00 Friday Saturday 22:15 18:15 20, ,00 Saturday Sunday 22:15 18:45 20, ,00 Sunday Monday 22:15 18:15 20, ,00 ETD: Estimated Time of Departure ETA: Estimated Time of Arrival 73

74 Combined transport: road-sea Warning The Estimated Time of Arrival (ETA) at Civitavecchia could be incompatible with the opening of the warehouse at Pescara (from 8:00 to 20:00). An additional waiting time could be needed to arrival at warehouse opening An additional time for embark/disembark could be considered (it is assumed equal to 2 hours 74

75 Combined transport: road-sea Crossing by sea: time and cost From fare From (Barcelona) To (Civitavecchia) ETD ETA Crossing time (h) Embark disembark (h) Crossing Cost Driver cost Total cost Monday Tuesday Wednesday Thursday Friday Saturday Sunday Tuesday 22:15 18:15 20, ,00 306, ,25 Wednesday 22:15 18:45 20, ,00 300, ,00 Thursday 22:15 18:15 20, ,00 306, ,25 Friday 22:15 18:45 20, ,00 300, ,00 Saturday 22:15 18:15 20, ,00 306, ,25 Sunday 22:15 18:45 20, ,00 300, ,00 Monday 22:15 18:15 20, ,00 306, ,25 = 12,50* (crossing time + embark disembark time) 75

76 Combined transport: road-sea Crossing by sea: time and cost From fare From Civitavecchia) To (Barcelona) ETD ETA Crossing time (h) Embark disembark (h) Crossing Cost Driver cost Total cost Monday Tuesday Wednesday Thursday Friday Saturday Sunday Tuesday 22:15 18:15 20, ,00 306, ,25 Wednesday 22:15 18:45 20, ,00 300, ,00 Thursday 22:15 18:15 20, ,00 306, ,25 Friday 22:15 18:45 20, ,00 300, ,00 Saturday 22:15 18:15 20, ,00 306, ,25 Sunday 22:15 18:45 20, ,00 300, ,00 Monday 22:15 18:15 20, ,00 306, ,25 = 12,50* (crossing time + embark disembark time) 76

77 Combined transport: road-sea Crossing by sea Access by road Egress by road 5,00 h 358, ,5 h (+4) 1180, ,25 time cost 300,00 km 1683,5 km distance 77

78 Combined transport: road-sea Crossing by sea Access by road Egress by road time cost time cost distance time cost distance 78

79 Combined transport: road-sea Egress by road: Time CARCONS PLC Zaragoza distance (km) v_media ITALTRAT (km/h) SPA Barcelona Civitavecchia Pescara 290,00 60,00 79

80 Combined transport: road-sea Egress by road: Time Travel time Operational time Total time Drivers (h) (h) (h) 1 4,83 2 6,83 Road travel time (with a mean speed of 60 km/h) time for Load/unload 80

81 Combined transport: road-sea Egress by road: fixed costs 81

82 Combined transport: road-sea Egress by road: fixed costs Road: fixed costs ( /h) 5,57 + 0,37 + 2,84 +12,50 + 0,4 + 6,15 = 27,83 82

83 Combined transport: road-sea Egress by road: fixed costs Fixed costs Variable costs Tolls Total cost Fixed costs ( /h) 5,57 + 0,37 + 2,84 +12,50 + 0,4 + 6,15 = 27,83 Total time (h) 6,83 6,83 * 27,83 = 190,17 83

84 Combined transport: road-sea Egress by road : fixed costs Fixed costs 190,17 Variable costs Tolls Total cost 84

85 Combined transport: road-sea Egress by road : variable costs Variable operational costs /km Fuel 0,33 Tyres 0,06 Maintenance 0,02 Repairs 0,03 Total annual direct operational costs 0,44 85

86 Combined transport: road-sea Egress by road : variable costs Fixed costs 190,17 Variable costs Tolls Total cost Variable costs ( /km) 0,33 + 0,06 + 0,02 +0,06 = 0,44 distance (km) 290,00 (290,00 * 0,44) = 127,60 86

87 Combined transport: road-sea Egress by road : fixed costs Fixed costs Variable costs 190,17 127,60 Tolls Total cost 87

88 Combined transport: road-sea Egress by road : tolls Fixed costs Variable costs 190,17 127,60 Tolls Total cost Tolls Civitavecchia-Pescara 54,40 88

89 Combined transport: road-sea Egress by road : fixed costs Fixed costs Variable costs Tolls 190,17 127,60 54,40 Total cost 89

90 Combined transport: road-sea Access by road : total cost Fixed costs Variable costs Tolls Total cost 190,17 127,60 54,40 372,17 90

91 Combined transport: road-sea Crossing by sea Access by road Egress by road 5,00 h 358, ,5 h (+4) 1180, ,25 4,83 h 372,17 300,00 km 1683,5 km 290 km 91

92 Combined transport: road-sea Warning The Estimated Time of Arrival (ETA) at Civitavecchia is incompatible with the opening of the warehouse at Pescara (from 8:00 to 20:00). An additional waiting time is needed to arrival at warehouse opening 92

93 Combined transport: road-sea Travel time table In this example, the travel start at Zaragoza Monday at 15:15, and arrives at Pescara Thursday at 8:00 (a wait time at disembarkation is supposed) For return, the travel start at Pescara Thursday at 10:00, and arrives at Zaragoza Saturday at 01:15 (a wait time at embarkation is supposed) 93

94 Combined transport: road-sea Travel time table Disembark and additional wait time Additional wait time and embark Distance (km) Embark Load/unload Disembark time In this example, the travel start at Zaragoza Monday at 15:15, and arrives at Pescara Thursday at 8:00 (a wait time at disembarkation is supposed) For return, the travel start at Pescara Thursday at 10:00, and arrives at Zaragoza Saturday at 01:15 (a wait time at embarkation is supposed) 94

95 Combined transport: road-sea Travel time table From Zaragoza to Pescara From Pescara to Zaragoza Zaragoza Barcelona Civitavecchia Pescara Pescara Civitavecchia Barcelona Zaragoza Sunday Sunday Monday Tuesday Tuesday Tuesday Wednesday Thursday Monday Monday Tuesday Wednesday Wednesday Wednesday Thursday Friday Tuesday Tuesday Wednesday Thursday Thursday Thursday Friday Saturday Wednesday Wednesday Thursday Friday Friday Friday Saturday Sunday Thursday Thursday Friday Saturday Saturday Saturday Sunday Monday Friday Friday Saturday Sunday Sunday Sunday Monday Tuesday Saturday Saturday Sunday Monday Monday Monday Tuesday Wednesday The travel must be designed so that the arrival at Pescara is from Monday to Friday between 8:00 and 20:00 At arrival: Unload phase (semifinished product) Load phase (finished product)

96 NOTE: we suppose an initial phase where some pallets are carried from Zaragoza to Pescara Combined transport: road-sea Travel time table Distance (km) T: trailer ST: semi-trailer time Monday Tuesday Travel 1 Travel 2 Travel 3 Travel 4 Travel 5 Wednesday Friday Saturday Sunday Sunday Wednesday Thursday Saturday Possible departures: Monday, Tuesday, Wednesday, Saturday, Sunday Possible arrivals: Friday, Saturday, Sunday, Wednesday, Thursday

97 Combined transport: road-sea An example of weekly use of tractors and semi-trailers Monday Tuesday Wednesday Thursday Friday Saturday Sunday AVAILABLE TRACTORS T1, T2, T3 T2, T3 T3 T1 T1, T2 T2, T3 AVAILABLE SEMI- TRACTORS ST1, ST2,ST3 ST2, ST3 ST3 ST1 ST1, ST2 T2, ST3 LEAVING (START FROM ZARAGOZA) T1+ST1 T2+ST2 T2+ST2 - T1+ST1 T2+ST2 T: trailer, ST: semi-trailer 97

98 Warehouses management The travels must be designed so that: Company A has into the warehouse the quantity of pallets needed for at least one delivery Company B has into the warehouse the quantity of finished product for a travel Travel Pallets for travel Pallets to be delivered to MULTINATIONAL Stockpile at Company A Stockpile at Company B (Company C) date 0/1 Number of pallets Delivered pallets stockpile stockpile 0: no travel 1: travel Number of pallets of finished product Delivered pallets (daily, excluding Saturday and Sunday) Pallets into the warehouse of company A Pallets into the warehouse of company B 98

99 Warehouses management Example of some travels Arrival at Zaragoza Travel Pallets for travel Pallets to be delivered to MULTINATIONAL Stockpile at Company A Stockpile at Company B (Company C) venerdì 1 settembre sabato 2 settembre domenica 3 settembre lunedì 4 settembre martedì 5 settembre mercoledì 6 settembre giovedì 7 settembre venerdì 8 settembre sabato 9 settembre domenica 10 settembre lunedì 11 settembre martedì 12 settembre mercoledì 13 settembre

100 Warehouses management Example of a week plan Travel Pallets for travel Pallets to be delivered to MULTINATIONAL Stockpile at Company A Stockpile at Company B (Company C) domenica 3 settembre lunedì 4 settembre martedì 5 settembre mercoledì 6 settembre giovedì 7 settembre venerdì 8 settembre sabato 9 settembre Day Travel cost Production Delivery Sunday 4196, Monday 0,00-25 Tuesday 0,00-25 Wednesday 0,00-25 Thursday 4196, Friday 3816, Saturday 0,00-100

101 Pallets Pallets Warehouses management Warehouse stockpile at Company A Stockpile trend (at Company A) Stockpile trend (at Company A) Pallets of finished product (at Company B) Pallets of finished product (at Company B) Pallets to be delivered (at Company C) Pallets to be delivered (at Company C) 101 Day Day

102 Combined transport: road-sea Working days Deliveries (pallets/day) Production (pallets/day) Number of travel pallets Annual cost: ,43 102

103 Comparison (annual) Road Combined Road cost , ,96 Sea cost ,46 Total cost , ,43 Road time (h) , ,67 Sea time (h) ,50 Total time (h) 6.994, ,17 + considering load/unload time and embark/disembark time

104 Short Sea Shipping Case study