April 21, 2023
Alternative Dispatching Methods in Truckload Trucking
Alternative Dispatching Methods in Truckload Trucking
Wilfrid Laurier UniversityOctober 1, 2010
Presentation OverviewPresentation Overview
MotivationHistorical DispatchingVarious Alternative Modes of
DispatchThe Latest (and Greatest) MethodsFuture Directions
Problem DomainProblem 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.
How would you dispatch?How would you dispatch?
Traditional dispatch minimizes empty repositioning miles
A
B
Driver Domicile
Recent Research: Alternative Dispatching Methods in TL Trucking
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 poorAlternative dispatching methods
are greatly needed
Freight Imbalance is Also a Big ProblemFreight Imbalance
is Also a Big Problem
Domicile_finder OutputBest Driver Domiciles
Tour Length Reduction StrategiesHub & 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 dispatchingOptimal & dedicated models‘Popcorn’ compromisesRegional dispatch models‘Pipeline’ methodsExtended regional models
Research in Truckload TruckingResearch in Truckload Trucking
Hub & Spoke Dispatching
Hub & Spoke Dispatching
A National Zone Network
A National Zone Network Picket Fence
Zone 4
Zone 1
Zone 2
Zone 3
Zone 5
Truckload LanesTruckload Lanes
Optimal Seeking Tour Building Routines
Optimal Seeking Tour Building Routines
More Difficult But Better SolutionsMore Difficult But Better Solutions Integer Programming FormulationInteger Programming Formulation
Maximize: Loaded Miles Minus Empty MilesMaximize: Loaded Miles Minus Empty Miles Subject to: Can Only Use Known Freight for Subject to: Can Only Use Known Freight for
Loaded MovesLoaded Moves Subject to: Drivers Begin and End at DomicileSubject to: Drivers Begin and End at Domicile Subject to: All Transshipment Nodes Maintain Subject to: All Transshipment Nodes Maintain
Balance ThroughoutBalance Throughout Subject to: Maximum Number of Moves Per TourSubject to: Maximum Number of Moves Per Tour Subject to: Sign Restrictions and IntegralitySubject to: Sign Restrictions and Integrality
Dedicated SolutionsDedicated Solutions
Optimal dispatch solutions easier with Optimal dispatch solutions easier with trucks dedicated to a single customer; trucks dedicated to a single customer; perhaps with other freight mixed inperhaps with other freight mixed in
CL2CL2
J22J22CL3CL3
J21J21
‘Popcorn’Dispatching‘Popcorn’
DispatchingLimited Random DispatchSeeks Middle Ground Between
Regularization and RandomnessDomicile Returns a Function of Limited
NetworkTypes of Dispatch Permitted:
Unlimited and Fully RandomConstrained by Moves or MilesHeavily Constrained (Star Dispatch)
Pipeline DispatchingPipeline Dispatching
Very Similar to Intermodal with Rail
Requires 3 Dispatches
Regional Fleet Development
Regional Fleet Development
3
2
8
7
6
10
9
1
4
11
1312
14
5
41% of fleet41% of fleet
Integrated Regional Model withLane/Pipeline/OTR
Integrated Regional Model withLane/Pipeline/OTR
3
2
8
7
6
10
9
1
4
11
1312
14
5
17
Experimental PlanExperimental 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
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 ModelSIMNET 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 StepsNext Steps
• Combine real-time revenue management with dispatch in the truckload trucking industry
21
Q&A PeriodQ&A Period