Innovative Consolidation Techniques for Improved Transportation Efficiency
Name
Piechnik_Schaufenbuel_Innovative Consolidation Techniques for Improved Transportation Efficiency.pdf
Description
Supply Chain Management capstone research project
Size
753.35 KB
Format
Adobe PDF
Checksum (MD5)
129b633308e324e748b0c649fbbc4a54
Author(s)
Piechnik, Daniel
Schaufenbuel, Olivia
Date Issued
June 16, 2021
Abstract
Many trucks in the US travel well below permitted cube and volume utilization, so consolidating two or more shipments onto a single multi-stop truckload (MSTL) route can increase truck utilization and decrease transportation costs. Many shippers and carriers lack sufficient network volume, transportation analytics capabilities, and supply network influence to successfully consolidate these loads. However, digital freight brokers often have large network shipment volumes and more advanced transportation analytics capabilities, which positions them to provide value to shipper and carrier partners in their network by identifying and realizing efficiency opportunities. This capstone uses a set-covering formulation of the Practical Pickup and Delivery Problem (PPDP) in combination with clustering and an adapted column generation approach to identify consolidation opportunities. The set covering problem, which is optimized to minimize cost using a mixed integer linear program solver, identified network cost reductions of 11% and a total network route count reduction of approximately 5%. Freight brokers and large transportation operators can use this approach and methodology to identify multi-stop truckload consolidation opportunities that increase transportation network efficiency by eliminating unnecessary truck routes.
Subjects
Supply Chain Strategy
Urban Logistics
Transportation
Terms of Use
CC0 1.0 Universal
Persistent DSpace Link
