Models for Reducing Deadheading through Carrier and Shipper Collaboration

The competitive nature in the trucking industry has forced trucking firms to develop innovative solutions to improve their operational efficiency and decrease marginal costs. There is also a great need to reduce deadheading miles of heavy trucks to help reduce the amount of air pollutants they emit. One way carriers and shippers are attempting to accomplish these goals is through various collaborative operational strategies. This work focuses on developing multiple collaboration frameworks and formulating optimization models for each framework that demonstrates the operations and reveals the potential cost savings of each framework.;The first collaboration framework focuses on how a medium level shipper or carrier can introduce collaboration in their operations by fulfilling a collaborative carrier\u27s or shipper\u27s delivery requests on its backhaul route. Two optimization models are developed to route the carrier of interest\u27s backhaul routes and select collaborative shipments to fulfill; one is formulated as an integer program and the other is formulated as a mixed integer program. Two solution methodologies, a greedy heuristic and tabu search, are used to solve the two problems, and numerical analysis is performed with a real world freight network. Numerical analysis on a real world freight network reveals that the percentage of cost savings for backhaul routes can be as high as 27%.;The second collaboration framework focuses on a group of shippers that collaborate their operations and form cycles between their long-haul shipping lanes. If the shippers provide the bundled lanes, as loops, to a common carrier they can realize cost savings from the carrier. The problem is formulated as a mixed integer program and forms least cost loops between the shipping lanes. A tabu search heuristic is used to solve the second collaboration framework and results using a real freight network reveal collaborative network costs savings between 7% to 12%. Three cost allocation mechanisms are proposed for the problem to distribute the costs to the shippers involved in the collaboration and computational results are provided for each of the allocation mechanisms

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

Advanced predictive-analysis-based decision support for collaborative logistics networks

Purpose – The purpose of this paper is to examine challenges and potential of big data in heterogeneous business networks and relate these to an implemented logistics solution. Design/methodology/approach – The paper establishes an overview of challenges and opportunities of current significance in the area of big data, specifically in the context of transparency and processes in heterogeneous enterprise networks. Within this context, the paper presents how existing components and purpose-driven research were combined for a solution implemented in a nationwide network for less-than-truckload consignments. Findings – Aside from providing an extended overview of today’s big data situation, the findings have shown that technical means and methods available today can comprise a feasible process transparency solution in a large heterogeneous network where legacy practices, reporting lags and incomplete data exist, yet processes are sensitive to inadequate policy changes. Practical implications – The means introduced in the paper were found to be of utility value in improving process efficiency, transparency and planning in logistics networks. The particular system design choices in the presented solution allow an incremental introduction or evolution of resource handling practices, incorporating existing fragmentary, unstructured or tacit knowledge of experienced personnel into the theoretically founded overall concept. Originality/value – The paper extends previous high-level view on the potential of big data, and presents new applied research and development results in a logistics application

Under-utilisation of road freight vehicle capacity: A case for eco-efficiency through collaboration

The road haulage sector experiences a considerable amount of inefficiency, characterised by sub-optimal utilisation of an individual vehicle’s cubic load fill and weight hauling capacity. This study firstly aims to understand why – despite its evident economic and environmental cost – this phenomenon has existed over the years. Next, an overview of initiatives and opportunities for improving freight vehicle capacity utilisation will be given. This paper by no means attempts to suggest that part-loaded or empty trucking can be fully eliminated. What is argued however is that there is theoretical scope for reducing the socio-environmental externalities of these activities while sustaining – if not increasing – the benefits that road haulage offers to the economy. Alongside direct mitigation of energy efficiency (by vehicle technology and/or modal shifts), maximizing existing vehicle capacity utilization must also form an integral part of efforts to green modern road freight logistics.It is suggested that horizontal collaboration and multi-actor co-loading of freight vehicles holds the greatest potential for improving vehicle fill rates. This requires little capital investment and would mean that the same degree of utility is delivered with fewer individual vehicles on the road. However, it is also argued that a collaborative road freight model may come in conflict with modern customer demands and production patterns, which typically involve rapid just-in-time deliveries of ever smaller consignments. Subsequently the widespread outsourcing of road freight operations to external third-party operators has not resulted in pronounced gains in vehicle capacity utilisation. It appears that a transport operator has very limited ability to better consolidate goods within its vehicles, unless its contractors offer an operational environment where this is possible. This paper suggests that a platform be established that will enable transport purchasers (contractors) to identify synergies in their logistical flows. This should help to move away from one-vehicle-to-one-customer arrangements, and develop an approach where a single moving vehicle’s available capacity is viewed as a service that is available for the benefit of several actors at the same time

Horizontale en verticale samenwerking in distributieketens met cross-docks

Logistiek dienstverleners staan voor grote uitdagingen op het gebied van duurzaamheid, in het bijzonder vanwege de steeds kleiner wordende zendingen die just-in-time bij de klant moeten worden afgeleverd. Samenwerking tussen partners in de distributieketen en met concurrenten daarbuiten biedt kansen om deze uitdagingen het hoofd te bieden. Dit proefschrift richt zich op samenwerkingsvormen in distributieketens met cross-docks. Cross-docks zijn logistieke centra die bedrijven in staat stellen om kleine zendingen gegroepeerd te transporteren zonder dat daarvoor tussentijdse opslag nodig is. In een cross-dock worden goederen direct van inkomende naar uitgaande vrachtwagens verplaatst. Het succesvol toepassen van cross-docking vereist verticale samenwerking tussen partners in opeenvolgende stadia van de distributieketen. Horizontale samenwerking ontstaat tussen mogelijk concurrerende bedrijven die vergelijkbare activiteiten in verschillende distributieketens uitvoeren. Dit proefschrift presenteert theoretische modellen voor horizontale en verticale samenwerking in distributieketens met cross-docks en bestudeert oplossingsmethodieken waarmee de duurzaamheid van deze ketens kan worden verbeterd. Daarvoor worden concepten uit de vakgebieden informatiesystemen, Operations Research en Supply Chain Management gecombineerd. De in dit proefschrift beschreven classificatie van wiskundige cross-docking modellen onthult nieuwe onderzoeksvragen gericht op een betere afstemming tussen interne cross-dock processen en ketenlogistiek. Een simulatiestudie illustreert hoe geringe aanpassingen in de ketenlogistiek tot grote prestatieverbeteringen in het cross-dock leiden. Op het gebied van horizontale samenwerking is een methode ontwikkeld die de uitwisseling van ladingen tussen transporteurs systematiseerd. Een reeks casussen toont aan dat doorbraken in ICT ontwikkeling nodig zijn om samenwerkende transporteurs in staat te stellen gezamenlijk planningsbeslissingen te nemen

Proactive model to determine information technologies supporting expansion of air cargo network

Shippers and recipients expect transportation companies to provide more than just the movement of a package between points; certain information must be available to them as well, to enable forecasts and plans within the supply chain. The transportation companies also need the information flow that undergirds a transportation grid, to support ad-hoc routing and strategic structural re-alignment of business processes. This research delineates the information needs for an expanding air cargo network, then develops a new model of the information technologies needed to support expansion into a new country. The captured information will be used by shippers, recipients, and the transportation provider to better guide business decisions. This model will provide a method for transportation companies to balance the tradeoffs between the operating efficiencies, capital expenditures, and customer expectations of their IT systems. The output of the model is a list of technologies – optimized by cost – which meet the specific needs of internal and external customers when expanding air cargo networks into a new country

Applications of biased-randomized algorithms and simheuristics in integrated logistics

Transportation and logistics (T&L) activities play a vital role in the development of many businesses from different industries. With the increasing number of people living in urban areas, the expansion of on-demand economy and e-commerce activities, the number of services from transportation and delivery has considerably increased. Consequently, several urban problems have been potentialized, such as traffic congestion and pollution. Several related problems can be formulated as a combinatorial optimization problem (COP). Since most of them are NP-Hard, the finding of optimal solutions through exact solution methods is often impractical in a reasonable amount of time. In realistic settings, the increasing need for 'instant' decision-making further refutes their use in real life. Under these circumstances, this thesis aims at: (i) identifying realistic COPs from different industries; (ii) developing different classes of approximate solution approaches to solve the identified T&L problems; (iii) conducting a series of computational experiments to validate and measure the performance of the developed approaches. The novel concept of 'agile optimization' is introduced, which refers to the combination of biased-randomized heuristics with parallel computing to deal with real-time decision-making.Las actividades de transporte y logística (T&L) juegan un papel vital en el desarrollo de muchas empresas de diferentes industrias. Con el creciente número de personas que viven en áreas urbanas, la expansión de la economía a lacarta y las actividades de comercio electrónico, el número de servicios de transporte y entrega ha aumentado considerablemente. En consecuencia, se han potencializado varios problemas urbanos, como la congestión del tráfico y la contaminación. Varios problemas relacionados pueden formularse como un problema de optimización combinatoria (COP). Dado que la mayoría de ellos son NP-Hard, la búsqueda de soluciones óptimas a través de métodos de solución exactos a menudo no es práctico en un período de tiempo razonable. En entornos realistas, la creciente necesidad de una toma de decisiones "instantánea" refuta aún más su uso en la vida real. En estas circunstancias, esta tesis tiene como objetivo: (i) identificar COP realistas de diferentes industrias; (ii) desarrollar diferentes clases de enfoques de solución aproximada para resolver los problemas de T&L identificados; (iii) realizar una serie de experimentos computacionales para validar y medir el desempeño de los enfoques desarrollados. Se introduce el nuevo concepto de optimización ágil, que se refiere a la combinación de heurísticas aleatorias sesgadas con computación paralela para hacer frente a la toma de decisiones en tiempo real.Les activitats de transport i logística (T&L) tenen un paper vital en el desenvolupament de moltes empreses de diferents indústries. Amb l'augment del nombre de persones que viuen a les zones urbanes, l'expansió de l'economia a la carta i les activitats de comerç electrònic, el nombre de serveis del transport i el lliurament ha augmentat considerablement. En conseqüència, s'han potencialitzat diversos problemes urbans, com ara la congestió del trànsit i la contaminació. Es poden formular diversos problemes relacionats com a problema d'optimització combinatòria (COP). Com que la majoria són NP-Hard, la recerca de solucions òptimes mitjançant mètodes de solució exactes sovint no és pràctica en un temps raonable. En entorns realistes, la creixent necessitat de prendre decisions "instantànies" refuta encara més el seu ús a la vida real. En aquestes circumstàncies, aquesta tesi té com a objectiu: (i) identificar COP realistes de diferents indústries; (ii) desenvolupar diferents classes d'aproximacions aproximades a la solució per resoldre els problemes identificats de T&L; (iii) la realització d'una sèrie d'experiments computacionals per validar i mesurar el rendiment dels enfocaments desenvolupats. S'introdueix el nou concepte d'optimització àgil, que fa referència a la combinació d'heurístiques esbiaixades i aleatòries amb informàtica paral·lela per fer front a la presa de decisions en temps real.Tecnologies de la informació i de xarxe