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Alternative Dispatching Methods in Truckload Trucking

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.

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Alternative Dispatching Methods in Truckload Trucking

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  1. Alternative Dispatching Methods in Truckload Trucking Wilfrid Laurier University October 1, 2010

  2. Presentation Overview • Motivation • Historical Dispatching • Various Alternative Modes of Dispatch • The Latest (and Greatest) Methods • Future Directions

  3. 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 pre-planning.

  4. How would you dispatch? Driver Domicile • Traditional dispatch minimizes empty repositioning miles A B

  5. 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

  6. Freight Imbalance is Also a Big Problem Best Driver Domiciles

  7. 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

  8. Hub & Spoke Dispatching

  9. A National Zone Network Picket Fence Zone 3 Zone 1 Zone 5 Zone 4 Zone 2

  10. Truckload Lanes

  11. Optimal Seeking Tour Building Routines • More Difficult But Better Solutions • Integer Programming Formulation • Maximize: Loaded Miles Minus Empty Miles • Subject to: Can Only Use Known Freight for Loaded Moves • Subject to: Drivers Begin and End at Domicile • Subject to: All Transshipment Nodes Maintain Balance Throughout • Subject to: Maximum Number of Moves Per Tour • Subject to: Sign Restrictions and Integrality

  12. Dedicated Solutions Optimal dispatch solutions easier with trucks dedicated to a single customer; perhaps with other freight mixed in J21 CL2 J22 CL3

  13. ‘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)

  14. Pipeline Dispatching Very Similar to Intermodal with Rail Requires 3 Dispatches

  15. Regional Fleet Development 5 2 12 6 13 1 10 11 14 9 4 7 3 8 41% of fleet

  16. 5 2 12 6 13 1 10 11 14 9 4 7 3 8 Integrated Regional Model withLane/Pipeline/OTR

  17. 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

  18. 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

  19. 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

  20. Next Steps • Combine real-time revenue management with dispatch in the truckload trucking industry

  21. Q&A Period

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