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OCR for page 61
cost vis-à-vis changes in the operating environment. They are able
to evaluate huge numbers of scenarios, allowing corporations to
determine the ideal number, size, and location for distribution centers
and cross-dock facilities.
However, while these models are precise and can allow for the
manipulation of huge amounts of data, they are limited in that
they can't accurately represent on-the-ground local details such as
traffic congestion, inefficient highway interchanges, or delay related
to transfer points between modes. Additionally, these models are
largely static and cannot easily incorporate future changes to the
network or its capacity. As an example, a one-hour drivetime
analysis for a site on the outskirts of a major metropolitan area will
usually show that a truck can travel just as far into and through the
city as outward from the city. Anyone who uses this same roadway
network during the morning or evening commute might suggest that
travel will be easier in one direction and considerably more difficult
in the other.
While computer models are powerful, useful, and increasing in
sensitivity, they are not yet (nor are they likely to be) a practical
substitute for local knowledge of actual conditions. Nevertheless,
they are widely applied and tend to govern decisions in the initial
planning stage, meaning that the large scale design of supply chains
is determined by the factors they consider or omit, as well as the
methods they employ.
Transportation network congestion
Network congestion for all modes impacts freight
facility location decisions. Most modes have at
least one identified trouble point. For example,
containerized ocean shippers may view Southern
California ports as an area of concern. Rail freight
experiences difficulty in major urban areas, at
the interface point between Class I railroads, or
between Class I railroads and short line carriers.
Truck carriers experience difficulty in any number
of urban markets.
Freight Facility Location Selection: A Guide for Public Officials 61
