Module Configuration of Rail Freight Transportation with Both Customer Segmentation and Product Family Genealogy in China

Abstract

The Chinese government is actively restructuring transportation to shift towards more sustainable rail freight transportation (RFT); however, there is still a lack of more systematic optimization in the whole production chain. This study develops a dual-focus modular configuration approach to explore the integration of customer demand and the production chain to achieve more sustainable operations in RFT. Customers have yielded eleven distinct groups, and operational processes have been segmented into sixteen modules by using the Ant Colony Optimization-based Fuzzy C-Means Clustering (ACOFCM) algorithm. Consequently, a Product Family Genealogy (PFG) model is conducted to identify three tailored product families (i.e., cross-border, multi-modal and general freight product). The developed dual-focus modular configuration approach has been proven to be feasible by utilizing a backtracking algorithm through a case study in an RFT logistics enterprise in China, which provides a standardization and optimization for RFT modular configurations.

Keywords

• modular design
• customer segmentation
• logistics services
• railway freight transportation
• ACOFCM clustering algorithm