thanks for your comment.

You can try to formulate your problem as a linear optimization problem, from scratch. For example, the cost of holding inventory can be derived from the travel time, and the travel time depends on transportation distance (one variable) and transportation mode (binary or integer variable).

The objective of covering 90% of your forecast by truck could be formulated as a constraint, or maybe a better approach would be to define two objective functions, and to apply multi-goal linear programming.

If you provide some more info I might very well try to model it and post it, maybe in a simplified version!

BR

]]>I am trying to “go to the next level”.

I want to look deeper than this and say, “OK, truck A costs me $100 and takes 3 weeks, but flight A costs me $200 and takes just 1 week to move the good”

For me, i am still trying to move things from A to B, but now i am expanding it to try and look at the total cost of holding the inventory, reduction in cash flow and the cost of delivery. I want to “optimise” my transportation so that maybe 90% of my forecast is shipped via truck, then i can “top up” with the flight if demand requires.

Any suggestions how to approach this issue or where to turn for some guidance?

Thanks ]]>