INFORMS Journal on Applied Analytics · 1988 · 117 citations · 4 references
ManagementOperations ManagementTransportation PlanningDemand ForecastingTransportTransportationDemand PlanningTraffic Demand ForecastingTransportation EconomicsTransportation ModelsTransportation System ManagementVehicle SchedulingDemand UncertaintyDemand Uncertainty AnalysisDemand Uncertainty ManagementDemand Uncertainty ModelingLoadLoad AssignmentLogistics OperationsVehicle Loading
The Commercial Transport Division of North American Van Lines dispatches thousands of trucks from customer origin to customer destination each week under high levels of demand uncertainty. Working closely with upper management, the project team developed a new type of network model for assigning drivers to loads. The model, LOADMAP, combines real-time information about drivers and loads with an elaborate forecast of future loads and truck activities to maximize profits and service. It provided management with a new understanding of the economics of truckload operations; integrated load evaluation, pricing, marketing, and load solicitation with truck and load assignment; and increased profits by an estimated $2.5 million annually, while providing a higher level of service.
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