The Value of Information in Container Transport: Leveraging the Triple Bottom Line
Planning the transport of maritime containers from the sea port to final destinations while using multiple transport modes is challenged by uncertainties regarding the time the container is released for further transport or the transit time from the port to its final destination. This paper assesses the value of information in container transport in terms of multiple performance dimensions, i.e. logistics costs, reliability, security, and emissions. The analysis is done using a single period model where a decision maker allocates arriving containers to two transport modes (slow, low price, no flexible departure times, versus fast, high price, flexible departure times). We construct a frontier of Pareto optimal decisions under each of the information scenarios and show that these frontiers move in a favorable direction when the level of information progresses. Each of the Pareto frontiers help strike the balance between the aforementioned performance dimensions. The mathematical results are illustrated using two numerical examples involving barge transport and train transport.
|Keywords||Pareto frontier, collateral benefits, intermodal transport, maritime container, value of information|
|JEL||Business Administration and Business Economics; Marketing; Accounting (jel M), Production Management (jel M11), Transportation Systems (jel R4)|
|Publisher||Erasmus Research Institute of Management (ERIM)|
|Grant||This work was funded by the European Commission 7th Framework Programme; grant id fp7/218588 - INTERMODAL GLOBAL DOOR-TO-DOOR CONTAINER SUPPLY CHAIN VISIBILITY (INTEGRITY)|
Zuidwijk, R.A, & Veenstra, A.W. (2010). The Value of Information in Container Transport: Leveraging the Triple Bottom Line (No. ERS-2010-039-LIS). ERIM report series research in management Erasmus Research Institute of Management. Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/20994