Minimizing fleet operating costs for a container transportation company

Minimizing fleet operating costs for a container transportation company

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Article ID: iaor2007822
Country: Netherlands
Volume: 171
Issue: 3
Start Page Number: 776
End Page Number: 786
Publication Date: Jun 2006
Journal: European Journal of Operational Research
Authors: , ,
Keywords: optimization
Abstract:

This paper focuses on a fleet management problem that arises in container trucking industry. From the container transportation company perspective, the present and future operating costs to minimize can be divided in three components: the routing costs, the resource (i.e., driver and truck) assignment costs and the container repositioning costs (i.e., the costs of restoring a given container fleet distribution over the serviced territory, as requested by the shippers that own the containers). This real-world problem has been modeled as an integer programming problem. The proposed solution approach is based on the decomposition of this problem in three simpler sub-problems associated to each of the costs considered above. Numerical experiments on randomly generated instances, as well as on a real-world data set of an Italian container trucking company, are presented.

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