Enterprise-wide freight simulation in an integrated logistics and transportation system

This paper describes an integrated logistics and transportation system to simulate enterprise-wide freight movements, to study the interactive influences between and the effects of highly developed information technologies on logistic decision-making and commercial vehicle operations. The integrated system is formulated as a comprehensive product supply chain system that integrates the logistical, informational, and physical aspects of transportation networks, consisting of three components, i.e., a logistic decision-making solver, a freight traffic simulation system, and a real-time information generator. The logistic decision-making solver is designed to determine the freight distribution among the components involved in the supply chain based on market demand, supply, and the associated transaction cost. The freight traffic simulation system simulates commercial vehicle operations on the transportation network based on logistic decisions with or without the real-time traffic information. The real-time information generator generates real-time traffic conditions and real-time supply and demand information. A numerical example is designed to study the evolvement of freight shipment distribution patterns based on transaction costs estimated using dynamic transportation costs experienced in previous trips under various scenarios.