NETWORK DESIGN FOR THE TEMPORAL AND SPATIAL COLLABORATION WITH SERVICE CLASS IN DELIVERY SERVICES

The COVID-19 pandemic has significantly impacted e-commerce and the delivery service sector. As lockdowns and social distancing measures were put in place to slow the spread of the virus, many brick-and-mortar stores were forced to close, leading to an increase in online shopping. This situation led to a surge in demand for delivery services as more people turned to the internet to purchase goods. However, this increase in demand also created several challenges for delivery companies. They experienced delays in delivering packages due to increased volume, limited staff, and disruptions to supply chains. It led to more competition and increased pressure on delivery companies to improve their services and delivery times. To overcome such competition, collaboration among small and medium-sized delivery companies can be a good way to compete with larger delivery companies. By working together, small and medium-sized companies can combine their resources and expertise to offer more extensive coverage and competitive prices than they could individually. This can help them to gain market share and expand their customer base. This study proposes a network design model for collaboration with service class in delivery services considering multi-time horizon. The problem to be considered is deciding which company is dedicated to delivering certain types of items, such as regular or refrigerated items, in designated regions in each time horizon. During the agreed-upon timeframe, the companies operate, using each other's infrastructure (such as vehicles and facilities) and sharing delivery centers for the coalition's benefit to improve efficiency and reduce costs. We also propose a multi-objective, nonlinear programming model that maximizes the incremental profit of participating companies and a linearization methodology to solve it. The max-sum criterion and Shapley value allocation methods are applied to find the best solution and ensure a fair distribution of profits among the collaborating group. The efficiency of the suggested model is shown through a numerical illustration

Collaborative urban transportation : Recent advances in theory and practice

We thank the Leibniz Association for sponsoring the Dagstuhl Seminar 16091, at which the work presented here was initiated. We also thank Leena Suhl for her comments on an early version of this work. Finally, we thank the anonymous reviewers for the constructive comments.Peer reviewedPostprin

Optimization of vehicle routing and scheduling with travel time variability - application in winter road maintenance

This study developed a mathematical model for optimizing vehicle routing and scheduling, which can be used to collect travel time information, and also to perform winter road maintenance operations (e.g., salting, plowing). The objective of this research was to minimize the total vehicle travel time to complete a given set of service tasks, subject to resource constraints (e.g., truck capacity, fleet size) and operational constraints (e.g., service time windows, service time limit). The nature of the problem is to design vehicle routes and schedules to perform the required service on predetermined road segments, which can be interpreted as an arc routing problem (ARP). By using a network transformation technique, an ARP can be transformed into a well-studied node routing problem (NRP). A set-partitioning (SP) approach was introduced to formulate the problem into an integer programming problem (I PP). To solve this problem, firstly, a number of feasible routes were generated, subject to resources and operational constraints. A genetic algorithm based heuristic was developed to improve the efficiency of generating feasible routes. Secondly, the corresponding travel time of each route was computed. Finally, the feasible routes were entered into the linear programming solver (CPL EX) to obtain final optimized results. The impact of travel time variability on vehicle routing and scheduling for transportation planning was also considered in this study. Usually in the concern of vehicle and pedestrian\u27s safety, federal, state governments and local agencies are more leaning towards using a conservative approach with constant travel time for the planning of winter roadway maintenance than an aggressive approach, which means that they would rather have a redundancy of plow trucks than a shortage. The proposed model and solution algorithm were validated with an empirical case study of 41 snow sections in the northwest area of New Jersey. Comprehensive analysis based on a deterministic travel time setting and a time-dependent travel time setting were both performed. The results show that a model that includes time dependent travel time produces better results than travel time being underestimated and being overestimated in transportation planning. In addition, a scenario-based analysis suggests that the current NJDOT operation based on given snow sector design, service routes and fleet size can be improved by the proposed model that considers time dependent travel time and the geometry of the road network to optimize vehicle routing and scheduling. In general, the benefit of better routing and scheduling design for snow plowing could be reflected in smaller minimum required fleet size and shorter total vehicle travel time. The depot location and number of service routes also have an impact on the final optimized results. This suggests that managers should consider the depot location, vehicle fleet sizing and the routing design problem simultaneously at the planning stage to minimize the total cost for snow plowing operations

A structured method for the optimization of the existing last mile logistic flows

Dissertation presented as the partial requirement for obtaining a Master's degree in Information Management, specialization in Knowledge Management and Business IntelligenceIn a fast-moving world some business exists due to the interconnectivity between countries. This happens because transports are able to reach the other side of the globe within few days and without being too expensive compensating the lower costs of production and competitive advantages. This is true for well-organized and big supply chains but even them can benefit from integration with disconnected and more complex supply chain as it is the case of e-commerce chains. The transaction of small packages from online shopping required in a totally distinct country of the place of production have very specific characteristics as they are spot flows, hard to predict and to combine with other goods owing to the fact that the destination of flows are different every time and it is not always worth it to dedicate a transport for such a small goods value and in addition most times, logistics have to answer to some challenging marketing requirements meaning they have time windows to fulfil. Last mile is a big part of logistics transports and is one important part of it that can really help companies having better prices and revenues for their transports. Last mile solutions need to be easy to implement and really have to translate in quick gains to logistic companies that are largely reducing their margins to increase competitiveness. In this context, the study aims to investigate and define a method following design Research Methodology hopping to draw some innovative solutions for the problem of last mile. In this respect, the work developed intends to study the solutions already implemented and extract insights on how distribution is made and how to maximize last mile profit through the mature of an algorithm able to reduce inefficiencies in a simple way without having to wiggle too much the structure of businesses as resources of last mile service providers are understood to be scarce as many last mile companies are small sized and running under big logistic players. The solution aims to attain the different marketing requirements exactly as it was defined without having to compromise anything but still being able to make good profit margins and perhaps make room for new opportunities to arise that previously were not profitable

Supply chain management optimization using meta-heuristics approaches applied to a case in the automobile industry

This thesis presents supply chain management optimization with meta-heuristics approaches, specifically on issues regarding the configuration of a generic multi stage distribution network, and the determination of a milk-run delivery issue in lean supply chain management. Indeed, this issue can be represented as the routing of the supply or delivery vehicle to construct multiple pick-ups or drop-offs on a regularly scheduled basis and at different locations. The optimal model for this milk-run delivery issue must aim to improve vehicle load and minimize transportation distance (optimal delivery route) between facilities while optimizing the entire delivery of goods among the supply chain facilities. The set of meta-heuristics approaches and hybrid meta-heuristics approaches introduced in the present research aim to become a modeling system to find an optimal solution for the transportation distance as well as the optimal delivery frequency for managing the transportation of goods in highly complex logistic networks. In fact, the optimal transportation distance ensures that the total cost of the entire supply chain is minimized. In particular, this modeling system groups concepts about integrated supply chain management proposed by logistics experts, operations research practitioners, and strategists. Indeed, it refers to the functional coordination of operations within the firm itself, between the firm and its suppliers as well as between the firm and its customers. It also references the inter-temporal coordination of supply chain decisions as they relate to the firm’s operational, tactical and strategic plans. The milk-run delivery issue is studied two ways: with the Genetic Algorithm approach and with the Hybrid of Genetic Algorithm and the Ant Colony Optimization approach. Various frameworks, models, meta-heuristics approaches and hybrid meta-heuristics approaches are introduced and discussed in this thesis. Significant attention is given to a case study from the automobile industry to demonstrate the effectiveness of the proposed approaches. Finally, the objective of this thesis is to present the Genetic Algorithm approach as well as the Hybrid of Genetic Algorithm with Ant Colony Optimization approach to minimize the total cost in the supply chain. This proposed Hybrid of Genetic Algorithm along with the Ant Colony Optimization approach can efficiently and effectively find optimal solutions. The simulation results show that this hybrid approach is slightly better efficient than the genetic algorithm alone for the milk-run delivery issue which allows us to obtain the minimum total automobile industry supply chain cost

A collaborative framework in outbound logistics for the us automakers

The competitive landscape of the U.S. automotive market has transformed from the traditional Big Three players to too many viable players. In 2008-2009, the harsh market conditions, excess production capacity, capital asset redundancies, and many inefficient strategies submerged as the roadblocks for the US automakers to stay competitive and profitable in the North American market. In this new competitive era, cross-company collaboration in product development, standardizing and communizing supply base, sharing flexible manufacturing platforms, using common inbound and out bound logistics service providers and warehousing etc. can play vital roles for the US automakers to reduce overall cost and return to profitability. Through the horizontal collaboration in the outbound logistics operations, these companies can create close-knit business partnership and act faster than the foreign rivals in delivering finished vehicles at the optimum cost. The optimization of outbound logistics operations through consolidation and collaboration among OEMs has tremendous potential to contribute to the profitability by lowering the cost of transportation, in-house inventory, transportation time, and facility costs. The collaboration in the intra- and inter-OEM outbound logistics operations is a critical area that the US automakers need to pay attention and prioritize in their cost reduction initiatives. This research presents an integrated collaboration framework for the outbound logistics operations of the US automakers. In our framework, we propose three potential levels for the US automakers to form outbound logistics collaboration: operational, tactical, and strategic. Our research proposition is to improve the performance of outbound logistics systems of automotive OEMs by means of horizontal collaboration between plants and competing OEMs. The proposed research thus relates to the literature on logistics system design and management and horizontal collaboration in supply chain management. The collaboration framework is demonstrated through a real world case study in US automotive industry. The contribution of this research is the introduction of a framework for intra- and inter-OEM collaboration and the development of novel logistics network design and flow models integrated with inventory models, lost sales, and expedited shipment. Besides the contribution to the academic literature, the proposed collaborative distribution system is a new concept in the automotive industry. Hence, this novel research work will also benefit to the practitioners. Keywords: Operational Collaboration, Tactical Collaboration, Strategic Collaboration, Frequency based Inventory, Customer Patience and Lost Sales, Expedited Shipments

Models and Solutions Algorithms for Improving Operations in Marine Transportation

International seaborne trade rose significantly during the past decades. This created the need to improve efficiency of liner shipping services and marine container terminal operations to meet the growing demand. The objective of this dissertation is to develop simulation and mathematical models that may enhance operations of liner shipping services and marine container terminals, taking into account the main goals of liner shipping companies (e.g., reduce fuel consumption and vessel emissions, ensure on-time arrival to each port of call, provide vessel scheduling strategies that capture sailing time variability, consider variable port handling times, increase profit, etc.) and terminal operators (e.g., decrease turnaround time of vessels, improve terminal productivity without significant capital investments, reduce possible vessel delays and associated penalties, ensure fast recovery in case of natural and man-made disasters, make the terminal competitive, maximize revenues, etc.). This dissertation proposes and models two alternatives for improving operations of marine container terminals: 1) a floaterm concept and 2) a new contractual agreement between terminal operators. The main difference between floaterm and conventional marine container terminals is that in the former case some of import and/or transshipment containers are handled by off-shore quay cranes and placed on container barges, which are further towed by push boats to assigned feeder vessels or floating yard. According to the new collaborative agreement, a dedicated marine container terminal operator can divert some of its vessels for the service at a multi-user terminal during specific time windows. Another part of dissertation focuses on enhancing operations of liner shipping services by introducing the following: 1) a new collaborative agreement between a liner shipping company and terminal operators and 2) a new framework for modeling uncertainty in liner shipping. A new collaborative mechanism assumes that each terminal operator is able to offer a set of handling rates to a liner shipping company, which may result in a substantial total route service cost reduction. The suggested framework for modeling uncertainty is expected to assist liner shipping companies in designing robust vessel schedules

Real-time optimization of an integrated production-inventory-distribution problem.

In today\u27s competitive business environment, companies face enormous pressure and must continuously search for ways to design new products, manufacture and distribute them in an efficient and effective fashion. After years of focusing on reduction in production and operation costs, companies are beginning to look into distribution activities as the last frontier for cost reduction. In addition, an increasing number of companies, large and small, are focusing their efforts on their core competencies which are critical to survive. This results in a widespread practice in industry that companies outsource one or more than one logistics functions to third party logistics providers. By using such logistics expertise, they can obtain a competitive advantage both in cost and time efficiency, because the third party logistics companies already have the equipment, system and experience and are ready to help to their best efforts. In this dissertation, we developed an integrated optimization model of production, inventory and distribution with the goal to coordinate important and interrelated decisions related to production schedules, inventory policy and truckload allocation. Because outsourcing logistics functions to third party logistics providers is becoming critical for a company to remain competitive in the market place; we also included an important decision of selecting carriers with finite truckload and drivers for both inbound and outbound shipments in the model. The integrated model is solved by modified Benders decomposition which solves the master problem by a genetic algorithm. Computational results on test problems of various sizes are provided to show the effectiveness of the proposed solution methodology. We also apply this proposed algorithm on a real distribution problem faced by a large national manufacturer and distributor. It shows that such a complex distribution network with 22 plants, 7 distribution centers, 8 customer zones, 9 products, 16 inbound and 16 outbound shipment carriers in a 12-month planning period can be redesigned within 33 hours. In recent years, multi-agent simulation has been a preferred approach to solve logistics and distribution problems, since these problems are autonomous, distributive, complex, heterogeneous and decentralized in nature and they require extensive intelligent decision making. Another important part in this dissertation involved a development of an agent-based simulation model to cooperate with the optimal solution given by the optimization model. More specifically, the solution given by the optimization model can be inputted as the initial condition of the agent-based simulation model. The agent-based simulation model can incorporate many other factors to be considered in the real world, but optimization cannot handle these as needed. The agent-based simulation model can also incorporate some dynamics we may encounter in the real operations, and it can react to these dynamics in real time. Various types of entities in the entire distribution system can be modeled as intelligent agents, such as suppliers, carriers and customers. In order to build the simulation model more realistic, a sealed bid multiunit auction with an introduction of three parameters a, ß and y is well designed. With the help of these three parameters, each agent makes a better decision in a simple and fast manner, which is the key to realizing real-time decision making. After building such a multi-agent system with agent-based simulation approach, it supports more flexible and comprehensive modeling capabilities which are difficult to realize in a general optimization model. The simulation model is tested and validated on an industrial-sized problem. Numerical results of the agent-based simulation model suggest that with appropriate setting of three parameters the model can precisely represent the preference and interest of different decision makers