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

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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

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

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Q&A PeriodQ&A Period