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Interactive Optimization Improves Service and Performance for Yellow Freight System

Author

Listed:
  • John W. Braklow

    (Operations Planning, Yellow Freight System, Inc., Overland Park, Kansas 66207)

  • William W. Graham

    (Operations Planning, Yellow Freight System, Inc., Overland Park, Kansas 66207)

  • Stephen M. Hassler

    (Operations Planning, Yellow Freight System, Inc., Overland Park, Kansas 66207)

  • Ken E. Peck

    (Operations Planning, Yellow Freight System, Inc., Overland Park, Kansas 66207)

  • Warren B. Powell

    (Department of Civil Engineering and Operations Research, Princeton University, Princeton, New Jersey 08544)

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. We 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 300,000 regular shipping customers has been the significant improvement in both transit times and service reliability.

Suggested Citation

  • John W. Braklow & William W. Graham & Stephen M. Hassler & Ken E. Peck & Warren B. Powell, 1992. "Interactive Optimization Improves Service and Performance for Yellow Freight System," Interfaces, INFORMS, vol. 22(1), pages 147-172, February.
    • Handle: RePEc:inm:orinte:v:22:y:1992:i:1:p:147-172
    DOI: 10.1287/inte.22.1.147
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    Citations

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    Cited by:

    1. Melkote, Sanjay & Daskin, Mark S., 2001. "An integrated model of facility location and transportation network design," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(6), pages 515-538, July.
    2. Peter C. Bell & Chris K. Anderson, 2002. "In Search of Strategic Operations Research/Management Science," Interfaces, INFORMS, vol. 32(2), pages 28-40, April.
    3. Keaton, Mark, 1995. "Economics of Density and the Less-Than-Truckload Motor Carrier Industry Since Deregulation," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 35(1).
    4. Michael F. Gorman & John-Paul Clarke & Amir Hossein Gharehgozli & Michael Hewitt & René de Koster & Debjit Roy, 2014. "State of the Practice: A Review of the Application of OR/MS in Freight Transportation," Interfaces, INFORMS, vol. 44(6), pages 535-554, December.
    5. Hewitt, Mike & Lehuédé, Fabien, 2023. "New formulations for the Scheduled Service Network Design Problem," Transportation Research Part B: Methodological, Elsevier, vol. 172(C), pages 117-133.
    6. Crainic, Teodor Gabriel, 2000. "Service network design in freight transportation," European Journal of Operational Research, Elsevier, vol. 122(2), pages 272-288, April.
    7. Peter C. Bell & Chris K. Anderson & Stephen P. Kaiser, 2003. "Strategic Operations Research and the Edelman Prize Finalist Applications 1989--1998," Operations Research, INFORMS, vol. 51(1), pages 17-31, February.
    8. Crainic, Teodor Gabriel & Laporte, Gilbert, 1997. "Planning models for freight transportation," European Journal of Operational Research, Elsevier, vol. 97(3), pages 409-438, March.
    9. Kraft, Edwin R. & Srikar, Bellur N. & Phillips, Robert L., 2000. "Revenue Management in Railroad Applications," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 39(1).

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