Scandinavian Working Papers in Economics
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CTS - Centre for Transport Studies Stockholm (KTH and VTI)
CTS - Centre for Transport Studies Stockholm (KTH and VTI) CTS - Centre for Transport Studies Stockholm (KTH and VTI)
Working papers in Transport Economics

No 2015:10:
Baserunning - analyzing the sensitivity and economies of scale of the Swedish national freight model system using stochastic production-consumption-matrices

Jonas Westin (), Gerard de Jong (), Inge Vierth (), Niclas Krüger (), Rune Karlsson () and Magnus Johansson ()

Abstract: The purpose of the paper is to analyze how sensitive the Swedish national freight model system Samgods is to uncertainties in its production-consumption matrices (PC-matrices). This is done by studying how sensitive outputs from one of its key component, the logistics model, are to changes in the PC-matrices. This paper is, to our knowledge, the first attempt to analyze the sensitivity and economies of scale of a national freight transport model using Monte Carlo simulation. The results indicate that the logistics model is able to find new logistics solutions when larger demand volumes are assumed. Freight volumes are calculated to shift to sea transport. If the transport volume increases with one percent, the logistics cost per tonne is on average reduced by about 0.5 percent. Part of the cost reduction comes from increased consolidation of shipments due to larger transport volumes. There is also a positive correlation between total transport demand and the load factor for heavier lorries, trains and larger ships. Without empirical data and further analysis it is difficult to assess the estimated strength of the effect. Furthermore, the analysis indicates that it might be possible to reduce runtimes by removing small transport flows from the PC-matrices without affecting aggregate results too much.

Keywords: Sensitivity analysis; Large scale freight model; Monte Carlo simulation; (follow links to similar papers)

JEL-Codes: C52; C63; R41; R42; (follow links to similar papers)

23 pages, May 13, 2015, Revised September 15, 2016

Published in European Journal of Transport and Infrastructure Research, Vol. 16 (4)pp.619-632, September 12 2016 http://tlo.tbm.tudelft.nl/fileadmin/Faculteit/TBM/Onderzoek/EJTIR/Back_issues/16.4/2016_04_04.pdf

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