Quantitative Methods in Aerospace Cargo Transportation Management Research Paper

Quantitative Methods in Aerospace Cargo Transportation Management - Research Paper Example Following pattern based strategy, analyzing the current trends, forecast and other predictive models, it is absolutely necessary to ensure potentially significant changes and improvements are introduced in cargo transportation management. Appropriate decision making cycle is required today to meet tomorrow's market demands . The key drivers that will dominate the air cargo world in the years to come are its standards, security and seamless movement across borders. This study will highlight the initiatives driven by important governing bodies like IATA, TIACA, Cargo Committee, Cargo Executive Summit to achieve those very goals of optimization and superior standards of cargo management.Significant gains in productivity can be achieved through advanced and more efficient IT-support and improved software systems, as well as automated transportation and handling equipment. The primary objective of this study is to reflect a few challenges and to present new insights and successful solutio ns to operational problems of cargo systems and cargo management. It has to be a collective effort with focus on the state of the art, applications of quantitative methods, as well as simulation results backed by authorities like IATA, TIACA and others whose initiative are in the interest of the industry. Initiatives are mainly keeping the larger picture in mind, to accommodate globalization of logistics, process complexity, need for fore cast, cost control, operational performance, Air freight company objectives, industry landscape, enhanced technology to support optimization. 2. Overview - Air Cargo Facts from IATA: Air Cargo is a US$50 billion business that transports 35% of the value of goods traded internationally and a critical part of the airline business which, as a whole, is the US$490 billion heart of a value chain that supports 32 million jobs and US$3.5 trillion of economic activity. It is an important industry that is critical to global business. While IATA continues in its endeavour to improve Aviation industry's competitiveness by cutting airport charges, improving fuel efficiency and other initiatives, there is focussed approach as far as Cargo priorities are concerned. Their attempt to simplify the business is already delivering results. E-freight is a reality and their US$28 billion settlement system is the supply chain's financial backbone which will be discussed further in the below sections. Apart from E-freight, their priorities include Cargo Safety, Cargo Security, Cargo and Environment, CASS and agency programmes along with Cargo Standards. It is imperative, IATA's priorities in Cargo Management ideally is the basic outline based on which quantitative methods for Aerospace Cargo Transportation Management have to be developed and implemented. Before there is further detailing on quantitative methods, a quick glance at the key drivers of Cargo world and its potential impact on business are listed below: Reduce operating costs Maintain optimum levels of