Integrating Strategic and Tactical Rolling Stock Models with Cyclical Demand

Michael F. Gorman

Department of MIS, Operations and Decision Sciences, University of Dayton, Dayton, USA.

DOI: 10.4236/jtts.2013.32016                

Abstract

In the transportation industry, companies position rolling stock where it is likely to be needed in the face of a pronounced weekly cyclical demand pattern in orders. Strategic policies based on assumptions of repetition of cyclical weekly patterns set rolling stock targets; during tactical execution, a myriad dynamic influences cause deviations from strategically set targets. We find that optimal strategic plans do not agree with results of tactical modeling; strategic results are in fact suboptimal in many tactical situations. We discuss managerial implications of this finding and how the two modeling paradigms can be reconciled.

Keywords

Rolling Stock; Network Management; Strategic; Tactical

Conflicts of Interest

The authors declare no conflicts of interest.

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