International Transportation Mode Selection through Total Logistics Cost-Based Intelligent Approach

Abstract

Background: International transportation has grown substantially, causing total logistics costs (TLCs) to rise. Companies are increasingly striving for their reduction. The most crucial factor affecting TLCs is the transportation mode, and its appropriate selection has become vital for firms. Maritime transport is the most preferred mode for international shipments, while air transport is also increasingly preferred due to the rise in underweight and high-frequency shipments, the expectation of reduced delivery times, and inventory costs. However, a thorough comparative analysis is necessary for the selection. Methods: This paper proposes an intelligent approach based on TLCs. Non-linear optimization is adopted for regular replenishment, while maching-learning classifiers are employed to establish a decision boundary for the chargeable weight of shipments. Conclusions: The study assists in decision making and also establishes a country-wide threshold, highlighting the importance of a country-based logistics strategy. The paper successfully establishes the trends and relations between logistics parameters, which assists the logistics decision making. Research identifies the gaps in the existing literature and bridges them by addressing the required concerns.