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Integrating Strategic and Tactical Rolling Stock Models with Cyclical Demand

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DOI: 10.4236/jtts.2013.32016    3,235 Downloads   4,854 Views   Citations

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.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

M. Gorman, "Integrating Strategic and Tactical Rolling Stock Models with Cyclical Demand," Journal of Transportation Technologies, Vol. 3 No. 2, 2013, pp. 162-173. doi: 10.4236/jtts.2013.32016.

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