USING THE EOQ PRINCIPLE FOR EFFICIENT VEHICLE UTILIZATION

1 HUSINEC Michal
Co-authors:
1 ŠUBRT Tomáš 1 FEJFAR Jiří 1 CHAMRADA Daniel
Institution:
1 Czech University of Life Sciences in Prague, Department of Systems Engineering, Prague, Czech Republic, EU, husinecmt@pef.czu.cz
Conference:
CLC 2019, Tatra Hotel, Zakopane, Poland, EU, December 2 - 4, 2019
Proceedings:
Proceedings CLC 2019
Pages:
66-71
ISBN:
978-80-87294-96-3
ISSN:
2694-9318
Published:
7th October 2020
Proceedings of the conference have been sent to Web of Science and Scopus for evaluation and potential indexing.
Metrics:
5 views / 4 downloads
Abstract

The problem of current freight transport lies in a plenty of smaller shipments that are delivered daily to the same collection points. Consumers and Distribution centers have found the possibility to reduce the amount of money in stock if they order only those goods that they are able to sell in a short time. On the other side, they artificially burden freight and increase the costs associated with transport. Freight transport is therefore affected by some degree of inefficiencies in the area of load. Founding a suitable vehicle to meet the everchanging demand for capacity would require a greater variability in the fleet. This would significantly increase investment in the fleet. The use of the EOQ (Economic Order Quantity) principle would define the optimal order and thus the efficient utilization of the vehicle in relation to the total transport costs. The analyzed problems are linked to the lack of information in the sector concerned, the limited details and the closed environment for freely available vehicle capacities. The current solution is limited to the solution of individual distribution channels of individual companies requesting services. This article introduces selected economic and mathematical methods in relation to the application for the purpose of determining possible economies of scale and savings from specialization. The essence of the application of economic and mathematical methods is the efficient use of resources and mitigating the negative effects of road transport on the environment.

Keywords: Economic order quantity (EOQ), Transport costs, Warehouse costs, Economies of scales, Economies of specialisation
Scroll to Top