An Optimization Approach to Freight Car Allocation Under Time-Mileage Per Diem Rental Rates
AbstractThe paper proposes the use of linear programming to "solve" a specific freight car allocation situation wherein a choice of freight cars is available for shipper shipments, and the railroad's car allocation objective is to maximize the expression (freight car rental receivables-freight car rental payables). The freight car rental payment structure which is applicable is that of "time-mileage per diem" rates proposed in the United States by the Interstate Commerce Commission. The paper first describes the problem and its background, and then a model and various extensions are formulated. An example illustrates how costly to a railroad the difference between good and bad car allocation may be. Although the proposed linear programming approach may be manually tractable for small volume car allocation situations, the paper concludes that in most car allocation situations, the approach requires a computerized data base with a "real-time" information and communications system which includes order entry, car rental, routing-distance, and train travel time and yard delay time information.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 18 (1972)
Issue (Month): 10 (June)
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.