System and Method Suitable for Optimizing Linehaul Operations
Technology description
Planning for large scale linehaul operations is one of the most challenging transportation operation problems due to the complexity and nature of the operations. The lack of software specifically designed for linehaul planning and scheduling motivated the development of an integrated optimization system that could primarily assist dispatchers in making their daily operational decisions and also in reducing total operating costs by 5-10%, as well as assist management in making tactical and strategic decisions.
The four major quantifiable factors contributing to the total operating cost in linehaul operations are the full miles, empty miles, brokered miles, and wait-time costs. A hybrid optimization model was developed to minimize the total operating cost by taking all essential decision variables into account, through increasing the full miles while minimizing the empty miles, broker miles, and wait-time cost. For a problem of this size and complexity, it is not possible to obtain the global optimum using exact solution methods within a reasonable length of computing time. Therefore, this unique hybrid model uses a modified exact solution assignment algorithm incorporating several heuristics that were specially developed to maximize efficiency gains, all within an acceptable computational time.
Two major heuristics algorithms were developed to find what is termed the 'best optimum' solution. The first one is used to find all possible optimum solution combinations (of equivalent optimal value for the assignment algorithm) by grouping loads and tractors in a certain manner. The second heuristics algorithm determines the best (preferred) optimum solution in such a way that the company tractors (including owner-operators) end up at the preferred location(s), which will lower the operating cost not only for the next iteration but also for the next day.
Although embodiments of the decision support system relate specifically to a company’s linehaul operations, the framework is such that it would be easy to adapt and modify to suit any linehaul operation.
Advantages
The key advantages of the technology are:
- It is independent of any commercially available optimization package
- It is the first customized solution for linehaul operations
- The method is accurate and independent from human subjectivity
Stage of development
A prototype has been developed and beta testing was completed on a client's database.
Intellectual property
- Issued US Patent: US 8,046,319 - Methods Suitable for Optimizing Linehaul Operations
- Pending Canadian Patent: CA 2551467 - System and Method for Optimizing Linehaul Operations
This technology is available for licensing.
Contact information
Office of Research Services, Industry-Government Services
University of New Brunswick
Phone: (506) 453-4674
partner@unb.ca
