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Shipment composition enhancement at a consolidation center

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  • Daganzo, Carlos F.

Abstract

When items of different shapes, sizes and weights are transported, some item combinations make most effective use of a vehicle's capacity. A consolidation center, receiving shipments of various items from different origins, can act as a point where those combinations can be formed. While sending shipments through the center invariably increases the total item-miles traveled, judicious shipping can reduce the vehicle-miles traveled. This paper examines ways in which loads should be made up to achieve as large a reduction in vehicle-miles as possible. The paper first considers a building block in which items are sent directly from one origin to one destination, and then analyzes a terminal serving many origins and one destination. The understanding developed from the building block leads to a linear programming formulation of the load make-up/routing problem that arises with many origins. The paper also presents a decomposition principle, and a matching algorithm that can be used to solve the problem in the important special case when vehicles can carry many items. The algorithm has a simple physical interpretation and does not require much data. It can be implemented by hand, or on an inexpensive computer.

Suggested Citation

  • Daganzo, Carlos F., 1988. "Shipment composition enhancement at a consolidation center," Transportation Research Part B: Methodological, Elsevier, vol. 22(2), pages 103-124, April.
    • Handle: RePEc:eee:transb:v:22:y:1988:i:2:p:103-124
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    Citations

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    Cited by:

    1. Chen, Jing & Dong, Ming & Xu, Lei, 2018. "A perishable product shipment consolidation model considering freshness-keeping effort," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 115(C), pages 56-86.
    2. Popken, Douglas A., 1996. "An analytical framework for routing multiattribute multicommodity freight," Transportation Research Part B: Methodological, Elsevier, vol. 30(2), pages 133-145, April.
    3. Chung-Yee Lee & Sila Çetinkaya & Wikrom Jaruphongsa, 2003. "A Dynamic Model for Inventory Lot Sizing and Outbound Shipment Scheduling at a Third-Party Warehouse," Operations Research, INFORMS, vol. 51(5), pages 735-747, October.
    4. Mepparambath, Rakhi Manohar & Cheah, Lynette & Courcoubetis, Costas, 2021. "A theoretical framework to evaluate the traffic impact of urban freight consolidation centres," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 145(C).
    5. Musolino, Giuseppe & Rindone, Corrado & Polimeni, Antonio & Vitetta, Antonino, 2019. "Planning urban distribution center location with variable restocking demand scenarios: General methodology and testing in a medium-size town," Transport Policy, Elsevier, vol. 80(C), pages 157-166.
    6. Estrada, Miquel & Roca-Riu, Mireia, 2017. "Stakeholder’s profitability of carrier-led consolidation strategies in urban goods distribution," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 165-188.
    7. Çetinkaya, SIla & Bookbinder, James H., 2003. "Stochastic models for the dispatch of consolidated shipments," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 747-768, September.
    8. Hezarkhani, Behzad & Slikker, Marco & Van Woensel, Tom, 2019. "Gain-sharing in urban consolidation centers," European Journal of Operational Research, Elsevier, vol. 279(2), pages 380-392.
    9. Sıla Çetinkaya & Chung‐Yee Lee, 2002. "Optimal outbound dispatch policies: Modeling inventory and cargo capacity," Naval Research Logistics (NRL), John Wiley & Sons, vol. 49(6), pages 531-556, September.

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