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April 21, 2023
Alternative Dispatching Methods in Truckload Trucking
Alternative Dispatching Methods in Truckload Trucking
Wilfrid Laurier UniversityOctober 1, 2010
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Presentation OverviewPresentation Overview
MotivationHistorical DispatchingVarious Alternative Modes of
DispatchThe Latest (and Greatest) MethodsFuture Directions
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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.
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How would you dispatch?How would you dispatch?
Traditional dispatch minimizes empty repositioning miles
A
B
Driver Domicile
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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
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Freight Imbalance is Also a Big ProblemFreight Imbalance
is Also a Big Problem
Domicile_finder OutputBest Driver Domiciles
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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
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Hub & Spoke Dispatching
Hub & Spoke Dispatching
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A National Zone Network
A National Zone Network Picket Fence
Zone 4
Zone 1
Zone 2
Zone 3
Zone 5
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Truckload LanesTruckload Lanes
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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
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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
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‘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)
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Pipeline DispatchingPipeline Dispatching
Very Similar to Intermodal with Rail
Requires 3 Dispatches
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Regional Fleet Development
Regional Fleet Development
3
2
8
7
6
10
9
1
4
11
1312
14
5
41% of fleet41% of fleet
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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
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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
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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
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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
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Next StepsNext Steps
• Combine real-time revenue management with dispatch in the truckload trucking industry
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Q&A PeriodQ&A Period