Institute of Transportation, MOTC

　　We propose a concept of CTM and the application of a System Dynamics approach to develop a supply chain simulation model using CTM to explore its impacts on the structure of supply chains. Three different scenarios are simulated: (1) unconstrained transportation capacity without CTM; (2) constrained transportation capacity without CTM; and (3) constrained transportation capacity with CTM. The manufacturers, distributors and carriers are considered to be the partners of CTM. Results of the simulation demonstrate that the potential supply chain cost savings and the bullwhip effect of supply chains as well as the overall transportation capacity utilization are improved. This study found that cost improvement has a time delay from upstream to downstream and is varied with time. The impacts on the downstream are not immediate, and are limited by the structure of the supply chain. Supply chain costs are affected by the maximum available transportation capacity and are unrelated to the minimum available transportation capacity. The effects of CTM become significant with the increase of unit inventory cost. Supply chain cost is diminishing with order delay reduction.