Interactive optimization improves service and performance for Yellow Freight System

Interactive optimization improves service and performance for Yellow Freight System

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Article ID: iaor19921384
Country: United States
Volume: 22
Issue: 1
Start Page Number: 147
End Page Number: 172
Publication Date: Jan 1992
Journal: Interfaces
Authors: , , , ,
Keywords: networks, graphs
Abstract:

Yellow Freight System has evolved from a regional motor carrier to one of the largest less-than-truckload motor carriers, handling over 15 million shipments annually over a network of 630 terminals. As the company grew, terminal managers in the field lacked the information that would allow them to coordinate their activities around the network. The authors developed a large-scale interactive optimization system called SYSNET to optimize the routing of shipments and design of the network. SYSNET has allowed Yellow to evaluate and implement basic operating strategies that run counter to decades of standard practice. In addition to substantial cost savings, SYSNET has improved Yellow’s overall planning responsiveness in a changing business environment. But the far more important statistic to Yellow’s 300000 regular shipping customers has been the significant improvement in both transit times and service reliability.

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