An operational planning model for the dynamic vehicle allocation problem with uncertain demands

The dynamic vehicle allocation problem arises when a motor carrier must simultaneously and in real time coordinate the dispatching of vehicles from one region to the next all over the country. The decision to send a vehicle loaded or empty from one region to the next, arriving in the destination region at some point in the future, must anticipate the downstream impacts of the decision. The consequences of another load in a particular region at some point in the future, however, are highly uncertain. A simple methodology is proposed which calculates approximately the marginal value of an additional vehicle in each region in the future. This information is then used to generate a standard pure network which can be efficiently optimized to give dispatching decisions for today.