Deployment tactics in a multi-facility network

In recent decades, globalisation and global sourcing has become a norm in doing business. Production lines are stretching across the globe to obtain the lowest cost of production. The long distances and transportation lead times between the various parties in a global supply chain caused challenges such as inventory imbalances, non-stationary demand, and bullwhip effect in the supply chain. Intermodal transportation, an important aspect in a supply chain, delivers the right amount of goods at the right time and in the right place. The challenge in achieving this objective is the tradeoffs among the key supply chain drivers – transportation, inventory and facility. This report focuses on the deployment tactics of intermodal transportation in a multi-facility network. It presents the decisions that supply chain and logistics managers will be required to make in order to achieve business objectives such as improving responsiveness to customers and minimising costs. For the writing of this report, literature reviews and interviews with industry professionals were carried out to collect qualitative information related to the challenges of managing an extended supply chain and the strategies in intermodal transportation. Additionally, simulation experiments were carried out to test the effects of three dynamic supply routing tactics – diversion, expediting and transshipment – under different operating conditions such as different stock-out policies, review periods and demand fluctuations. The use of these tactics can improve inventory imbalances among facilities and responsiveness to markets. Finally, based on the simulation experiments, recommendations will be provided to facilitate a company’s deployment of supply routing tactics.Bachelor of Science (Maritime Studies