The impact of intelligent transportation systems on supply chain management

Businesses are constantly searching for ways to reduce costs and increase revenue. This is a fact of life in a world where shareholder value drives corporate actions. In order to become more profitable, these businesses develop new processes and techniques to create efficiency. This paper is focused on one particular new technology that can be used to increase corporate profitability--intelligent transportation systems. The primary research objective of this thesis is to determine the impact that differing levels of information can have on transportation practices, and therefore, in turn on corporate profitability. This information is collected, analyzed, and disseminated through the use of intelligent transportation systems. The end result of this work is a quantification of this impact and conclusions related to which informational practices should be implemented into the supply chain. An experimental setup is designed that uses the Los Angeles Highway System as a test-bed. Traffic data is collected on this network over a two-week period. This data is used as the foundation to perform a series of simulations using differing levels of information. Each of these information levels is compared to a baseline to yield a % time savings. Next, a sensitivity analysis is performed by introducing a random error term which is normally distributed with mean zero and a specified standard deviation. The author concludes that there appears to be a fairly consistent trend in the way differing levels of information provide value. Progressing up the information spectrum, it appears that more and more value can be extracted in the form of time savings over the baseline. A monetary framework is examined which translates the time savings derived in the simulations into financial

Department dc:contributor.department

Massachusetts Institute of Technology. Engineering Systems Division

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2004

Author dc:creator

• Beinhaker, Ross, 1978-

Advisor dc:contributor.advisor

• Tomer Toledo.

• Engineering Systems Division.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/29522

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/29522