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Consolidating and Dispatching Truck Shipments of Mobil Heavy Petroleum Products

Author

Listed:
  • Dan O. Bausch

    (INSIGHT, Inc., 19820 Village Office Court, Bend, Oregon 97702)

  • Gerald G. Brown

    (Operations Research (OR/BW), Naval Postgraduate School, Monterey, California 93943)

  • David Ronen

    (School of Business Administration, University of Missouri—St. Louis, 8001 Natural Budge Road, St. Louis, Missouri 63121)

Abstract

Mobil Oil Corporation consolidates and dispatches truck shipments of heavy petroleum products—lubricants in packages and in bulk—from 10 lubricant plants nationwide. It dispatches hundreds of orders daily either individually or as consolidated truckloads, using a very nonhomogeneous fleet of Mobil-controlled and contract vehicles and common carriers. Shipment schedules may span several days and include stops to pick up returned drums or entire trailers. Shipping costs depend upon the vehicle used, the shipment size, the locations of the stops, and the route distance and time. Candidate consolidations are generated automatically or with dispatcher assistance. Then, the dispatcher uses optimization to select a minimal-cost set of schedules. Mobil has been using this system for three years, reducing annual transportation costs by about $1 million (US).

Suggested Citation

  • Dan O. Bausch & Gerald G. Brown & David Ronen, 1995. "Consolidating and Dispatching Truck Shipments of Mobil Heavy Petroleum Products," Interfaces, INFORMS, vol. 25(2), pages 1-17, April.
    • Handle: RePEc:inm:orinte:v:25:y:1995:i:2:p:1-17
    DOI: 10.1287/inte.25.2.1
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    Citations

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    Cited by:

    1. D Ronen & C A Goodhart, 2008. "Tactical store delivery planning," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(8), pages 1047-1054, August.
    2. Furkan Uzar, M. & Çatay, Bülent, 2012. "Distribution planning of bulk lubricants at BP Turkey," Omega, Elsevier, vol. 40(6), pages 870-881.
    3. Yan Cheng Hsu & Jose L. Walteros & Rajan Batta, 2020. "Solving the petroleum replenishment and routing problem with variable demands and time windows," Annals of Operations Research, Springer, vol. 294(1), pages 9-46, November.
    4. Nguyen, Christine & Dessouky, Maged & Toriello, Alejandro, 2014. "Consolidation strategies for the delivery of perishable products," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 108-121.
    5. Chiang, Wen-Chyuan & Russell, Robert A., 2004. "Integrating purchasing and routing in a propane gas supply chain," European Journal of Operational Research, Elsevier, vol. 154(3), pages 710-729, May.
    6. Christine Nguyen & Alejandro Toriello & Maged Dessouky & James E. Moore, 2013. "Evaluation of Transportation Practices in the California Cut Flower Industry," Interfaces, INFORMS, vol. 43(2), pages 182-193, April.
    7. S Eom & E Kim, 2006. "A survey of decision support system applications (1995–2001)," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(11), pages 1264-1278, November.

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