Transport Decision Making Based On The Total Logistics Cost

Logistics is the cornerstone supporting the trade booming. For company itself, at the same time of making a Win-win situation, it is important to learn the advanced logistics management theory and support the logistics of Eurasia. With globalization going on, the environment of transportation activities become more and more complex, so the transportation decision needs to cover a lot of factors. The total logistics cost or supply chain cost is often considered as the key parameter for supply chain evaluation and optimization. Therefore, the logistics cost of transport activities passing through the Eurasia plays a significant role for business.In this paper, a two-step logistics cost calculator combing the macro and micro sight is developed to estimate the transportation method. The main work includes:(1) Analyze the logistics environment by using AHP. Considering the cost, time, safety and environment, utilize AHP to make a primary result.(2) Build model of the total logistics cost. By computing micro logistics cost, divide the cost into five parts, and explore the relationships between them.(3) Complicate the cost model. Estimate transportation decision making under multi-product and multimodal transport by using genetic algorithm.(4) Analyze the logistics decision making under a real case, compare the different factors and get the result of Yuxinou railway.It is proved that AHP method could be used as the primary judgment of different alternatives, and the detail logistics cost calculator is adequate to be a further and economy investigation on the result of AHP. Also, the result of the case shows the Yuxinou railway is appropriate to shipping high value-added goods which have a strict time limitation. So the companies who have such kind of product should take Yuxinou railway into account as a strategic logistics resource.