International intermodal choices via chance-constrained goal programming

Abstract

Over the years, an increasing interdependence of the world economy has led to the considerable growth of international trade. Due to the lengthy distribution channel, international trade is often characterized by intermodal shipment which moves products across national boundaries via more than one mode of transportation. Consequently, the intermodal choice is of vital importance to the success of international trade. The intermodal choice, however, has never been a simple matter for any distribution manager because it can be affected by the multitude of conflicting factors such as cost, on-time service, and risk. This article develops a chance-constrained goal programming model to aid the distribution manager in choosing the most effective intermodal mix that not only minimizes cost and risk, but also satisfies various on-time service requirements.