International Transportation Mode Selection through Total Logistics Cost-Based Intelligent Approach

Rushikesh A. Patil, Abhishek D. Patange () and Sujit S. Pardeshi
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Rushikesh A. Patil: Department of Mechanical Engineering, COEP Technological University, Pune 411005, India
Abhishek D. Patange: Department of Mechanical Engineering, Cummins College of Engineering for Women, Pune 411052, India
Sujit S. Pardeshi: Department of Mechanical Engineering, COEP Technological University, Pune 411005, India

Logistics, 2023, vol. 7, issue 3, 1-26

Abstract: Background : International transportation has grown substantially, causing total logistics costs (TLCs) to rise. Companies are increasingly striving for their reduction. The most crucial factor affecting TLCs is the transportation mode, and its appropriate selection has become vital for firms. Maritime transport is the most preferred mode for international shipments, while air transport is also increasingly preferred due to the rise in underweight and high-frequency shipments, the expectation of reduced delivery times, and inventory costs. However, a thorough comparative analysis is necessary for the selection. Methods: This paper proposes an intelligent approach based on TLCs. Non-linear optimization is adopted for regular replenishment, while maching-learning classifiers are employed to establish a decision boundary for the chargeable weight of shipments. Conclusions: The study assists in decision making and also establishes a country-wide threshold, highlighting the importance of a country-based logistics strategy. The paper successfully establishes the trends and relations between logistics parameters, which assists the logistics decision making. Research identifies the gaps in the existing literature and bridges them by addressing the required concerns.

Keywords: international transportation; total logistics cost; transportation costs; inventory holding costs; ordering costs; machine learning (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2023
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