Logistics
Engineering
Handbook
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CRC Press is an imprint of the
Ta
y
lor & Francis Grou
p
, an informa business
Boca Raton London New York
Logistics
Engineering
Handbook
Edited by
G. Don Taylor
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CRC Press
Taylor & Francis Group
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© 2008 by Taylor & Francis Group, LLC
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Library of Congress Cataloging-in-Publication Data
Logistics engineering handbook / editor, G. Don Taylor.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-8493-3053-7 (alk. paper)
1. Systems engineering Handbooks, manuals, etc. 2. Logistics Handbooks, manuals, etc. I.
Taylor, G. Don. II. Title.
TA168.L64 2008
658.5 dc22 2007022017
Visit the Taylor & Francis Web site at

and the CRC Press Web site at

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 is handbook is dedicated to my children, Alex and Caroline.
Alex always makes me laugh and he is the best pal I’ve ever had.
We think so much alike it seems that we are almost the same guy!
My time with him is treasured.
Caroline is the sweetest little person I’ve ever known.

She has stolen my heart forever and has made the word “Daddy”
my most cherished title.
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Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
About the Editor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii
Contributors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv
Section I Introduction to Logistics Engineering
1 Logistics from a Historical Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1
Joel L. Sutherland
2 Economic Impact of Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1
Rosalyn A. Wilson
3 Logistics Engineering Tool Chest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1
Dušan Teodorović

and Katarina Vukadinović
4 Logistics Metrics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1
 omas L. Landers, Alejandro Mendoza, and John R. English
5 Logistics as an Integrating System’s Function . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1
Benjamin S. Blanchard
Section II Logistics Activities
6 Customer Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-1
Richard Germain and Wayne Whitworth
7 Purchasing and Sourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-1
Chi-Guhn Lee
8 Demand Forecasting in Logistics: Analytic Hierarchy Process and
Genetic Algorithm-Based Multiple Regression Analysis . . . . . . . . . . . . . . . . . . . . . . . 8-1
William Ho and Carman Ka Man Lee
9 Facilities Location and Layout Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-1
Benoit Montreuil

10 Inventory Control  eory: Deterministic and Stochastic Models. . . . . . . . . . . . . . . 10-1
Lap Mui Ann Chan and Mustafa Karakul
11 Material Handling System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-1
Sunderesh S. Heragu
Contents
vii
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12 Warehousing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12-1
Gunter P. Sharp
13 Distribution System Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-1
Marc Goetschalckx
14 Transportation Systems Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14-1
Joseph Geunes and Kevin Taa e
Section III Topics in Transportation Management
15 Real-Time Dispatching for Truckload Motor Carriers . . . . . . . . . . . . . . . . . . . . . . . . 15-1
Warren B. Powell
16 Classic Transportation Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-1
K. Bulbul, Gunduz Ulusoy, and A. Sen
17 Pricing and Rating. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17-1
Ryan E. Maner, Tarek T. Taha, and Gary L. Whicker
18 Management of Unbalanced Freight Networks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-1
G. Don Taylor, Jr.
19 Revenue Management and Capacity Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-1
Douglas R. Bish, Ebru K. Bish, and Bacel Maddah
Section IV Enabling Technologies
20 Ubiquitous Communication: Tracking Technologies within
the Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-1
M. Eric Johnson
21 Electronic Connectivity and So ware . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21-1
Darren M. Scott

22 Reliability, Maintainability, and Supportability in Logistics. . . . . . . . . . . . . . . . . . . 22-1
C. Richard Cassady, Edward A. Pohl, and  omas G. Yeung
23 Funding and Justifying Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23-1
Ricki G. Ingalls, Yen-Ping Leow Sehwail, and Loay Sehwail
24 Logistics and the Internet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24-1
Teodor Gabriel Crainic and M. Grazia Speranza
Section V Emerging and Growing Trends
25 Reverse Logistics, Green Logistics, and Packaging . . . . . . . . . . . . . . . . . . . . . . . . . . . 25-1
James R. Stock
26 Global Logistics Concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26-1
David Bennett
27 Outsourcing and  ird-Party Logistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27-1
Xiubin Wang and Qiang Meng
28 Brief Overview of Intermodal Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28-1
Tolga Bektaş and Teodor Gabriel Crainic
viii Contents
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29 Logistics in Service Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-1
Manuel D. Rossetti
30 Securing the Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-1
Luke Ritter
Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .I-1
Contents ix
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