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However, no change is seen in the results, i.e., seaway transportation still presents a costly justifiable approach, and similar to scenario 1, a multimodal terminal established at node 2. In scenario 3, mode changing cost is about five times larger than DC establishment cost.
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Under scenarios 1 and 3, mode changing cost is low, so the node 17 selected for multimodal terminal.
So multimodal route is consists of four seaway and one railway links and multimodal terminal established at node 2. Under scenario 2, mode changing cost is raised to 10,000 (close to that of DC establishment cost).
The multimodal links on the figure can represent either of a road, a railway, a seaway, or a combination of these transportation modes with multimodal terminals to change modes.
Changing mode change cost affects on establishing multimodal terminals.
Last cost function is the cost of providing mode changing facilities at multimodal terminals.
And if yes, mode changing facilities should locate on which multimodal terminals?
First problem is to select multimodal routes from supplier to potential DCs along with locating multimodal terminals.
Mode changing can be happened only on multimodal terminals (nodes that more than one mode inters or exits the node).
Transportation mode can be changed at multimodal terminals where at least two different transportation modes start/end.
Under scenario 1, mode changing cost (cost of providing mode changing facilities at multimodal terminals) is much lower than DC establishment cost (about one hundredth).
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