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Dynamic Routing for Priority Shipments in LTL Service Networks

Author

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  • Raymond K. Cheung

    (Department of Industrial Engineering and Engineering Management, Hong Kong University of Science and Technology, Clearwater Bay, Hong Kong)

  • B. Muralidharan

    (Sabre Decision Technology, Fort Worth, Texas)

Abstract

Currently, less-than-truckload (LTL) carriers route both the regular and the priority shipments through their service networks using some fixed route patterns, known as load plans. In this paper, we consider an alternative strategy for routing priority shipments in LTL networks. This strategy exploits the stochasticity and dynamism embedded in the routing process where the real-time information at the current terminal (such as the loading status of trailers and the arrival of shipments) and the expected travel times from its neighboring terminals to the destination are used to route shipments adaptively. We show that this strategy can be approximated by the problem of finding dynamic shortest paths over a network with random arc costs. We develop an efficient algorithm to compute the expected travel times of these paths. These times can then be used when we implement the proposed strategy. In the numerical testing with real data, we observe that the level of service for priority shipments can be improved significantly.

Suggested Citation

  • Raymond K. Cheung & B. Muralidharan, 2000. "Dynamic Routing for Priority Shipments in LTL Service Networks," Transportation Science, INFORMS, vol. 34(1), pages 86-98, February.
    • Handle: RePEc:inm:ortrsc:v:34:y:2000:i:1:p:86-98
    DOI: 10.1287/trsc.34.1.86.12279
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    References listed on IDEAS

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    Cited by:

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    2. Thomas, Barrett W. & White III, Chelsea C., 2007. "The dynamic shortest path problem with anticipation," European Journal of Operational Research, Elsevier, vol. 176(2), pages 836-854, January.
    3. Häme, Lauri & Hakula, Harri, 2013. "Dynamic journeying under uncertainty," European Journal of Operational Research, Elsevier, vol. 225(3), pages 455-471.
    4. G. Guastaroba & M. G. Speranza & D. Vigo, 2016. "Intermediate Facilities in Freight Transportation Planning: A Survey," Transportation Science, INFORMS, vol. 50(3), pages 763-789, August.
    5. Sarah Root & Amy Cohn, 2008. "A novel modeling approach for express package carrier planning," Naval Research Logistics (NRL), John Wiley & Sons, vol. 55(7), pages 670-683, October.
    6. Anne Lange & Werner Delfmann, 2017. "Network concentration indices for less-than-truckload transportation," Transportation, Springer, vol. 44(6), pages 1475-1497, November.
    7. Hernández, Salvador & Peeta, Srinivas & Kalafatas, George, 2011. "A less-than-truckload carrier collaboration planning problem under dynamic capacities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 933-946.
    8. Herszterg, Ian & Ridouane, Yassine & Boland, Natashia & Erera, Alan & Savelsbergh, Martin, 2022. "Near real-time loadplan adjustments for less-than-truckload carriers," European Journal of Operational Research, Elsevier, vol. 301(3), pages 1021-1034.
    9. N Shi & R K Cheung & H Xu & K K Lai, 2011. "An adaptive routing strategy for freight transportation networks," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 799-805, April.

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