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Politechnika Opolska

Operations Research
The Main Issue of Transportation Problem

Created by: Juan A. Sánchez

Distributed under: BY-SA
Why Transportation?
Actually a lot of big companies
develope their production activity in
many different parts of the world.
Others produce so far away from their
main sale targets or, simply, they sell
products worldwide.
Types of Transportation
 Surface transportation
 Air transportation
 Sea transportation
 Multimodal transportation
Multimodal Transportation
 Most flexible
 Door to door transportation (also
called terminal to terminal)
 Most complex
 Most expensive
 Combine, at least, two different types
of transportation.
Elements of MT
 Only one carrier (MTO): Multimodal
Transportation Operator.
 Only one transport document
(covering all modes of transportation)
 MT must have one freight rate, it can
be different for different modes of
 MTO must deliver to final destination
that is stipulated in contract. Never
can delegate to other carrier.
Main documentation in MT
 Nature of the goods (identification)
 If required, safety procedures for
dangerous goods (handle warnings,
number of packages, risks…)
 The apparent conditions of the goods.
 Name and data about MTO.
 Information about destination and
delivery deadlines.
 Protocols for international trade and
 INCOTERMS guarantee not
misunderstanding between two countries
with different trade practices (and
sometimes law).
 Departure term (Group E)
 Shipment terms paid (Group F)
◦ FCA: Free carrier
◦ FAS: Free alongside ship
◦ FOB: Free on board
 Shipment terms unpaid (Group G)
◦ CFR: Cost and freight
◦ CIF: Cost, insurance and freight
◦ CPT: Carriage paid to
◦ CIP: Carriage and insurance paid to
 Arrival terms (Group D)
◦ DAF: Delivered At Frontier
◦ DES: Delivered Ex Ship
◦ DEQ: Delivered Ex Quay
◦ DDU: Delivered Duty Unpaid
◦ DDP: Delivered Duty Paid
 Expansion of markets makes necessary
new strategies to optimize transportation.
 Control of transport costs has become as
important as control of production costs.
 The emergence of a competitive and
reliable transportation door to door (MT)
contribute to create a new trading
 Transportation is, nowadays, a essential
issue in trading and production bussines.