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May 23, 2017 Alternative Dispatching Methods in Truckload Trucking Wilfrid Laurier University October 1, 2010 Presentation Overview Motivation Historical Dispatching Various Alternative Modes of Dispatch The Latest (and Greatest) Methods Future Directions Problem Domain US Logistics costs are approximately $1.2 trillion annually, or 9.5% of GDP! 6% of GDP is spent on transportation costs alone. Approximately 80% of this cost is in trucking. Freight availability is highly stochastic. Competitive environment results in commodity pricing and prevents preplanning. How would you dispatch? Driver Domicile A B Traditional dispatch minimizes empty repositioning miles Recent Research: Alternative Dispatching Methods in TL Trucking Minimization of empty repositioning miles is good only for the carrier Excessive tour length & retention statistics in LTL vs. OTR Quality of driver life is poor Alternative dispatching methods are greatly needed Freight Imbalance is Also a Big Problem Best Driver Domiciles Domicile_finder Output Research in Truckload Trucking Tour Length Reduction Strategies Hub & Spoke Systems (Like LTL & Intermodal) Failure of H&S led to a focus on partitioned fleets; but what are the effects on remaining OTR? Zone & lane dispatching Optimal & dedicated models ‘Popcorn’ compromises Regional dispatch models ‘Pipeline’ methods Extended regional models Hub & Spoke Dispatching A National Zone Network Picket Fence Zone 3 Zone 1 Zone 5 Zone 4 Zone 2 Truckload Lanes Optimal Seeking Tour Building Routines More Difficult But Better Solutions Integer Programming Formulation Maximize: Subject to: Subject to: Subject to: Subject to: Subject to: Loaded Miles Minus Empty Miles Can Only Use Known Freight for Loaded Moves Drivers Begin and End at Domicile All Transshipment Nodes Maintain Balance Throughout Maximum Number of Moves Per Tour Sign Restrictions and Integrality Dedicated Solutions Optimal dispatch solutions easier with trucks dedicated to a single customer; perhaps with other freight mixed in CL2 J21 CL3 J22 ‘Popcorn’ Dispatching Limited Random Dispatch Seeks Middle Ground Between Regularization and Randomness Domicile Returns a Function of Limited Network Types of Dispatch Permitted: Unlimited and Fully Random Constrained by Moves or Miles Heavily Constrained (Star Dispatch) Pipeline Dispatching Very Similar to Intermodal with Rail Requires 3 Dispatches Regional Fleet Development 5 13 11 9 12 1 4 8 41% of fleet 14 7 3 2 6 10 Integrated Regional Model with Lane/Pipeline/OTR 5 13 11 9 12 1 4 8 14 7 3 2 6 10 Experimental Plan • Baseline • Integration of regions and lanes • Regional dispatch given priority for various service area sizes • Lane dispatch given priority for various service area sizes • Lane/region operating flexibility • Lane/region/pipeline/OTR 17 Performance of Extended Regional Models • BR-IL-300 model utilizes 78 % of all drivers with little negative effect on remaining OTR fleet • BL1-IR-300 utilizes 84% of all drivers but neutralizes regions • BR-IL-300-Flex and BR-IL-BP-300 not strong 18 SIMNET II Model • Tracks/updates all drivers, equipment, & loads • Transient period to seed system • Comprehensive & realistic dispatch algorithm • Metrics of interest to all parties; drivers, carriers & shippers 19 Next Steps • Combine real-time revenue management with dispatch in the truckload trucking industry 20 Q&A Period 21