Undergraduate Students Build a New Inventory Transportation Model
Innovation in the Classroom
As part of the curriculum for the Spring 2011section of M&IS 34064, Manufacturing Resource Planning taught by Dr. Alfred L. Guiffrida, is a topic which addressees making joint inventory and transportation related decisions. Typically decision models assume that the transportation cost component of the model is constant regardless of the size (and weight) of the order quantity. In reality, the transportation cost is a function of the order quantity (weight) and thus should not be treated as a constant.
Professor Guiffrida, noticing the students' keen observation of this, presented them with a real world motor carrier freight rate tariff in which the transportation cost does vary as a function of the order quantity shipped. Guiffrida suggested the students use log-linear regression analysis to model the freight tariff and build a new inventory transportation model that would accommodate the more realistic modeling of the transportation component of the joint inventory transportation model. The findings were compiled into a paper called “Modeling Motor Carrier Freight Tariffs Using a Power Curve Model”
The paper was submitted to the International Academy of Business and Economics Conference and underwent a double blind review. It was accepted and will be published in the Proceedings of the 2011 International Academy of Business and Economics Conference, Las Vegas. NV. Professor Guiffrida presented the paper at the conference on Oct 17. 2011.
|Dr. Alfred L. Guiffrida||Management and Information Systems Professor|
|Nathaniel R. Porter,||Operations Management Major|
|Randall B. Schieber||Operations Management Major|
|Seth C. Wannemacher||Operations Management Major|
|Wanjing Yang||Marketing Major|
|Yelei Xia||Finance Major|