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Integrating Strategic And Tactical Rolling Stock Models With Cyclical Demand, Michael F. Gorman
Integrating Strategic And Tactical Rolling Stock Models With Cyclical Demand, Michael F. Gorman
MIS/OM/DS Faculty Publications
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.