Design and implementation of an interactive optimization system for network design in the motor carrier industry

Warren Buckler Powell, Yosef Sheffi

Research output: Contribution to journalArticle

69 Scopus citations

Abstract

We describe the design and implementation of an interactive optimization system for routing freight over a less-than-truckload motor carrier network. We formulate a very large, mixed integer programming problem, and develop a decomposition strategy based partly on the mathematical structure of the problem as well as a range of important; real-world issues and constraints. Then we develop and implement a local improvement heuristic in such a way as to keep the 'man-in-the-loop,' using the analyst to make judgments regarding certain complex constraints and tradeoffs. Important aspects of the system include a range of modeling approximations to keep the problem tractable and the way the analyst evaluates the quality of the different numbers. The package was implemented and is currently being used on an ongoing basis by a major motor carrier. An overview of the major elements of the package is given.

Original languageEnglish (US)
Pages (from-to)12-29
Number of pages18
JournalOperations Research
Volume37
Issue number1
DOIs
StatePublished - Jan 1 1989

All Science Journal Classification (ASJC) codes

  • Computer Science Applications
  • Management Science and Operations Research

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