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Dynamic Control of Logistics Queueing Networks for Large-Scale Fleet Management

Author

Listed:
  • Warren B. Powell

    (Department of Civil Engineering and Operations Research, Princeton University, Princeton, NJ 08544)

  • Tassio A. Carvalho

    (IBM Consulting Group, T. J. Watson Research Center, Yorktown Heights, NY 10598)

Abstract

Dynamic fleet management problems are normally formulated as networks over dynamic networks. Additional realism usually implies the inclusion of complicating constraints, typically producing exceptionally large integer programs. In this paper, we present for the first time the formulation of dynamic fleet management problems in an optimal control setting, using a novel formulation called a Logistics Queueing Network (LQN). This formulation replaces a single, large optimization problem with a series of very small problems that involve little more than solving a single sort at each point in space and time. We show that this approach can produce solutions that are within a few percent of a global optimum but provide for considerably more flexibility than standard linear programs.

Suggested Citation

  • Warren B. Powell & Tassio A. Carvalho, 1998. "Dynamic Control of Logistics Queueing Networks for Large-Scale Fleet Management," Transportation Science, INFORMS, vol. 32(2), pages 90-109, May.
    • Handle: RePEc:inm:ortrsc:v:32:y:1998:i:2:p:90-109
    DOI: 10.1287/trsc.32.2.90
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    References listed on IDEAS

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    1. Warren B. Powell, 1989. "A Review of Sensitivity Results for Linear Networks and a New Approximation to Reduce the Effects of Degeneracy," Transportation Science, INFORMS, vol. 23(4), pages 231-243, November.
    2. Warren B. Powell, 1996. "A Stochastic Formulation of the Dynamic Assignment Problem, with an Application to Truckload Motor Carriers," Transportation Science, INFORMS, vol. 30(3), pages 195-219, August.
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