Cargo Consolidation and Distribution Through a Terminals-Network: A Branch-And-Price Approach

Less-than-truckload is a transport modality that includes many practical variations to convey a number of transportation-requests from the origin locations to their destinations by using the possibility of goods-transshipments on the carrier?s terminals-network. In this way logistics companies are required to consolidate shipments from different suppliers in the outbound vehicles at a terminal of the network. We present a methodology for finding near-optimal solutions to a less-than-truckload shipping modality used for cargo consolidation and distribution through a terminals-network. The methodology uses column generation combined with an incomplete branch-and-price procedure.Fil: Dondo, Rodolfo Gabriel. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Santa Fe. Instituto de Desarrollo Tecnológico para la Industria Química. Universidad Nacional del Litoral. Instituto de Desarrollo Tecnológico para la Industria Química; Argentin

Routing design for less-than-truckload motor carriers using ant colony techniques

One of the most important challenges for Less-Than-Truck-Load carriers consists of determining how to consolidate flows of small shipments to minimize costs while maintaining a certain level of service. For any origin-destination pair, there are several strategies to consolidate flows, but the most usual ones are: peddling/collecting routes and shipping through one or more break-bulk terminals. Therefore, the target is determining a route for each origin-destination pair that minimizes the total transportation and handling cost guaranteeing a certain level of service. Exact resolution is not viable for real size problems due to the excessive computational time required. This research studies different aspects of the problem and provides a metaheuristic algorithm (based on Ant Colonies Optimization techniques) capable of solving real problems in a reasonable computational time. The viability of the approach has been proved by means of the application of the algorithm to a real Spanish case, obtaining encouraging results

Transportation service procurement using combinatorial auctions

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2003.Includes bibliographical references (leaves 39-40).Auction is a mechanism of selling distinct assets that can be both physical objects and virtual objects. Examples of virtual objects are the rights to use assets like airport time slots and FCC spectrum, or to service truckload delivery routes in a transportation network. Under some situations bidding on combinations of objects can render lower total price compare with bidding the objects one at a time, and the auction that allows bidders to bid on combinations of different assets are called combinatorial auctions. With shipper being the auctioneer and carriers being the bidders, combinatorial auction has become increasingly important in the transportation service procurement domain, due to its mechanism to align shipper s procurement interest with carrier transportation service cost structure, which in turn lowers shippers total procurement cost. The thesis provides a comprehensive review of the use of conditional bidding within a transportation combinatorial auction framework. The thesis first describes the general forms of the transportation services available, and discusses the economics of motor carriers that provide LTL and TL services. It then illustrates the basic optimization technique of conditional bidding for TL service procurement and discusses the information technologies that enable the optimization-based procurement and the actual application of the method in the real world.by XiaoPing Chen.M.Eng.in Logistic

Comparison of agent-based scheduling to look-ahead heuristics for real-time transportation problems

We consider the real-time scheduling of full truckload transportation orders with time windows that arrive during schedule execution. Because a fast scheduling method is required, look-ahead heuristics are traditionally used to solve these kinds of problems. As an alternative, we introduce an agent-based approach where intelligent vehicle agents schedule their own routes. They interact with job agents, who strive for minimum transportation costs, using a Vickrey auction for each incoming order. This approach offers several advantages: it is fast, requires relatively little information and facilitates easy schedule adjustments in reaction to information updates. We compare the agent-based approach to more traditional hierarchical heuristics in an extensive simulation experiment. We find that a properly designed multiagent approach performs as good as or even better than traditional methods. Particularly, the multi-agent approach yields less empty miles and a more stable service level

Simulation and optimization of a multi-agent system on physical internet enabled interconnected urban logistics.

An urban logistics system is composed of multiple agents, e.g., shippers, carriers, and distribution centers, etc., and multi-modal networks. The structure of Physical Internet (PI) transportation network is different from current logistics practices, and simulation can effectively model a series of PI-approach scenarios. In addition to the baseline model, three more scenarios are enacted based on different characteristics: shared trucks, shared hubs, and shared flows with other less-than-truckload shipments passing through the urban area. Five performance measures, i.e., truck distance per container, mean truck time per container, lead time, CO2 emissions, and transport mean fill rate, are included in the proposed procedures using real data in an urban logistics case. The results show that PI enables a significant improvement of urban transportation efficiency and sustainability. Specifically, truck time per container reduces 26 percent from that of the Private Direct scenario. A 42 percent reduction of CO2 emissions is made from the current logistics practice. The fill rate of truckload is increased by almost 33 percent, whereas the relevant longer distance per container and the lead time has been increased by an acceptable range. Next, the dissertation applies an auction mechanism in the PI network. Within the auction-based transportation planning approach, a model is developed to match the requests and the transport services in transport marketplaces and maximize the carriers’ revenue. In such transportation planning under the protocol of PI, it is a critical system design problem for decision makers to understand how various parameters through interactions affect this multi-agent system. This study provides a comprehensive three-layer structure model, i.e. agent-based simulation, auction mechanism, and optimization via simulation. In term of simulation, a multi-agent model simulates a complex PI transportation network in the context of sharing economy. Then, an auction mechanism structure is developed to demonstrate a transport selection scheme. With regard of an optimization via simulation approach and sensitivity analysis, it has been provided with insights on effects of combination of decision variables (i.e. truck number and truck capacity) and parameters settings, where results can be drawn by using a case study in an urban freight transportation network. In the end, conclusions and discussions of the studies have been summarized. Additionally, some relevant areas are required for further elaborate research, e.g., operational research on airport gate assignment problems and the simulation modelling of air cargo transportation networks. Due to the complexity of integration with models, I relegate those for future independent research

ROUTING DESIGN FOR LESS-THAN-TRUCKLOAD MOTOR CARRIERS USING ANT COLONY TECHNIQUES

One of the most important challenges for Less-Than-Truck-Load carriers consists of determining how to consolidate flows of small shipments to minimize costs while maintaining a certain level of service. For any origin-destination pair, there are several strategies to consolidate flows, but the most usual ones are: peddling/collecting routes and shipping through one or more break-bulk terminals. Therefore, the target is determining a route for each origin-destination pair that minimizes the total transportation and handling cost guaranteeing a certain level of service. Exact resolution is not viable for real size problems due to the excessive computational time required. This research studies different aspects of the problem and provides a metaheuristic algorithm (based on Ant Colonies Optimization techniques) capable of solving real problems in a reasonable computational time. The viability of the approach has been proved by means of the application of the algorithm to a real Spanish case, obtaining encouraging results.

Algorithms for bundling and pricing trucking services: Deterministic and stochastic approaches

Bundling and pricing trucking services is an important strategic decision for carriers. This is helpful when they consider the incorporation of new businesses to their networks, look for economic and optimal operations, and develop revenue management strategies. Reverse combinatorial auctions for trucking services are real-world examples that illustrate the necessity of such strategies. In these auctions, a shipper asks carriers for quotes to serve combinations of lanes and the carriers have to bundle demand and price it properly. This dissertation explores several dimensions of the problem employing state-of-the-art analytical tools. These dimensions include: Truckload (TL) and less-than-truckload (LTL) operations, behavioral attributes driving the selection of trucking services, and consideration of deterministic and stochastic demand. Analytical tools include: advanced econometrics, network modeling, statistical network analysis, combinatorial optimization, and stochastic optimization. The dissertation is organized as follows. Chapter 1 introduces the problem and related concepts. Chapter 2 studies the attributes driving the selection of trucking services and proposes an econometric model to quantify the shipper willingness to pay using data from a discrete choice experiment. Chapter 3 proposes an algorithm for demand clustering in freight logistics networks using historical data from TL carriers. Chapter 4 develops an algorithmic approach for pricing and demand segmentation of bundles in TL combinatorial auctions. Chapter 5 expands the latter framework to consider stochastic demand. Chapter 6 uses an analytical approach to demonstrate the benefits of in-vehicle consolidation for LTL carriers. Finally, Chapter 7 proposes an algorithm for pricing and demand segmentation of bundles in LTL combinatorial auctions that accounts for stochastic demand. This research provides meaningful negotiation guidance for shippers and carriers, which is supported by quantitative methods. Likewise, numerical experiments demonstrate the benefits and efficiencies of the proposed algorithms, which are transportation modeling contributions

Physical internet-enabled hyperconnected distribution assessment

L'Internet Physique (IP) est une initiative qui identifie plusieurs symptômes d'inefficacité et non-durabilité des systèmes logistiques et les traite en proposant un nouveau paradigme appelé logistique hyperconnectée. Semblable à l'Internet Digital, qui relie des milliers de réseaux d'ordinateurs personnels et locaux, IP permettra de relier les systèmes logistiques fragmentés actuels. Le but principal étant d'améliorer la performance des systèmes logistiques des points de vue économique, environnemental et social. Se concentrant spécifiquement sur les systèmes de distribution, cette thèse remet en question l'ordre de magnitude du gain de performances en exploitant la distribution hyperconnectée habilitée par IP. Elle concerne également la caractérisation de la planification de la distribution hyperconnectée. Pour répondre à la première question, une approche de la recherche exploratoire basée sur la modélisation de l'optimisation est appliquée, où les systèmes de distribution actuels et potentiels sont modélisés. Ensuite, un ensemble d'échantillons d'affaires réalistes sont créé, et leurs performances économique et environnementale sont évaluées en ciblant de multiples performances sociales. Un cadre conceptuel de planification, incluant la modélisation mathématique est proposé pour l’aide à la prise de décision dans des systèmes de distribution hyperconnectée. Partant des résultats obtenus par notre étude, nous avons démontré qu’un gain substantiel peut être obtenu en migrant vers la distribution hyperconnectée. Nous avons également démontré que l'ampleur du gain varie en fonction des caractéristiques des activités et des performances sociales ciblées. Puisque l'Internet physique est un sujet nouveau, le Chapitre 1 présente brièvement l’IP et hyper connectivité. Le Chapitre 2 discute les fondements, l'objectif et la méthodologie de la recherche. Les défis relevés au cours de cette recherche sont décrits et le type de contributions visés est mis en évidence. Le Chapitre 3 présente les modèles d'optimisation. Influencés par les caractéristiques des systèmes de distribution actuels et potentiels, trois modèles fondés sur le système de distribution sont développés. Chapitre 4 traite la caractérisation des échantillons d’affaires ainsi que la modélisation et le calibrage des paramètres employés dans les modèles. Les résultats de la recherche exploratoire sont présentés au Chapitre 5. Le Chapitre 6 décrit le cadre conceptuel de planification de la distribution hyperconnectée. Le chapitre 7 résume le contenu de la thèse et met en évidence les contributions principales. En outre, il identifie les limites de la recherche et les avenues potentielles de recherches futures.The Physical Internet (PI) is an initiative that identifies several symptoms of logistics systems unsustainability and inefficiency and tackles them by proposing a novel paradigm called Hyperconnected Logistics. Similar to the Digital Internet, which connects thousands of personal and local computer networks, PI will connect the fragmented logistics systems of today. The main purpose is to enhance the performance of logistics systems from economic, environmental and social perspectives. Focusing specifically on the distribution system, this thesis questions the order of magnitude of the performance gain by exploiting the PI-enabled hyperconnected distribution. It is also concerned by the characterization of the hyperconnected distribution planning. To address the first question, an exploratory research approach based on optimization modeling is applied; first, the current and prospective distribution systems are modeled. Then, a set of realistic business samples are created, and their economic and environmental performance by targeting multiple social performances are assessed. A conceptual planning framework is proposed to support the decision making in the hyperconnected distribution system. Based on the results obtained by our investigation, it can be argued that a substantial gain can be achieved by shifting toward Hyperconnected Distribution. It is also revealed that the magnitude of the gain varies by business characteristics and the targeted social performance. Since the Physical Internet is a novel topic, chapter 1 briefly introduces PI and Hyperconnected Logistics. Chapter 2 discusses the research foundations, goal and methodology. It also describes the challenges of conducting this research and highlights the type of contributions aimed for. Chapter 3 presents the optimization models including a core distribution network design modeling approach. Influenced by the characteristics of the current and prospective distribution systems, three distribution system-driven models are developed. Chapter 4 engages with the characterization of the business samples, the modeling and calibration of the parameter that are employed in the models. The exploratory investigation results are presented in Chapter 5. Chapter 6 describes the hyperconnected distribution planning framework. Chapter 7 summarizes the content of the thesis and highlights the main contributions. Moreover, it identifies the research limitations and potential future research avenues