Mohsen Rajabi

21.1 Introduction 441

Energy in the World 441

The Importance of Energy Around the World 442

Energy Freight Transportation 444

21.2 Energy Freight-Transportation Network 449

Application of Energy Freight-Transportation Models 449

Energy Freight-Transportation Network 450

Classifications of Energy Freight-Transportation Networks 451

Introducing the Energy Freight-Transportation Network Models 453

21.3 Case Studies 461 21.3.1 Case: A Pricing Mechanism for Determining the

Transportation Rates 461

21.4 Conclusions and Directions for Further Research 464

Figure 2.1 Logistics tlows and some of the different logistics terminologies [3].

logistics. It is the flow of returned goods and used products as well as salvage, scrap disposal, and returnable packaging back through the system.

In this chapter, the emphasis is on the physical Hows (also known as material or inventory flows). Information flows are discussed in Chapter 12.

Physical flows involve the entire process and activities of logistics systems; however, to explore the concept of physical flows systematically, the major compo­nents of logistics systems can be categorized into five functional areas, based on Ailawadi and Singh |4]:

• Network design

• Information

• Transportation

• Inventory

• Warehousing, material handling, and packaging¹

Considering these functional areas, physical How is more involved with the transportation and warehousing, material handling, and packaging. These two func­tional areas are discussed in Sections 2.1 and 2.4, respectively. Also, the physical

' For further information about the logistics functional areas, see reference |4], pp. 11-16.

^[1] Less than truckload: Any quantity of freight weighing less than the amount required for the application of a truckload rate.

^[2] "Slurry systems involve grinding the solid material to certain particle size, mixing it with water to form a fluid, muddy substance, pumping that substance trough a pipeline, and then decanting the water and removing it, leaving the solid material." [2]

^[3] These functions are broadly explored in reference [5], pp. 472-477.

^[4] Further details about these devices, along with the appropriate storage systems are described in the chapter 15 of reference [31.

[5] 0 2011 ^{pera,ions and} Management. DOT: I0.1016/B978-0-12-38S20M.00019-0 | ¹ Elsevier Inc. All rights reserved.

[6] I I

Functions Variables