IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v40y2010i5p368-384.html
   My bibliography  Save this article

Hub Group Implements a Suite of OR Tools to Improve Its Operations

Author

Listed:
  • Michael F. Gorman

    (Department of Management Information Systems, Operations Management and Decision Sciences, University of Dayton, Dayton, Ohio 45419)

Abstract

Hub Group, a North American intermodal freight rail transportation company, developed an integrated production decision support system to improve its yield management and container allocation. The system combines a suite of analytical tools, including forecasting, error distribution analysis, expected value-based heuristics, and optimization tools to improve the decision making of Hub's frontline employees. It is important to note that the production decision support system was structured to fit within Hub's existing organizational structure, business processes, and information technology systems to reduce project risk, development costs, and operational disruption. In 2008, the system's first full year of use, Hub improved its revenue per load by 3 percent and increased its container velocity by 5 percent. These improvements led to a net return of $11 million in cost savings, which equals 22 times Hub's initial investment during that first year of operation.

Suggested Citation

  • Michael F. Gorman, 2010. "Hub Group Implements a Suite of OR Tools to Improve Its Operations," Interfaces, INFORMS, vol. 40(5), pages 368-384, October.
    • Handle: RePEc:inm:orinte:v:40:y:2010:i:5:p:368-384
    DOI: 10.1287/inte.1100.0507
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.1100.0507
    Download Restriction: no
    File URL: https://libkey.io/10.1287/inte.1100.0507?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Daniel Adelman, 2007. "Price-Directed Control of a Closed Logistics Queueing Network," Operations Research, INFORMS, vol. 55(6), pages 1022-1038, December.
    2. Michael F. Gorman & Dharma Acharya & David Sellers, 2010. "CSX Railway Uses OR to Cash In on Optimized Equipment Distribution," Interfaces, INFORMS, vol. 40(1), pages 5-16, February.
    3. Michael F. Gorman & Sanjay Ahire, 2006. "A Major Appliance Manufacturer Rethinks Its Inventory Policies for Service Vehicles," Interfaces, INFORMS, vol. 36(5), pages 407-419, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Xinchang, 2017. "Static and dynamic resource allocation models for single-leg transportation markets with service disruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 87-108.
    2. Wang, Hua & Wang, Xinchang & Zhang, Xiaoning, 2017. "Dynamic resource allocation for intermodal freight transportation with network effects: Approximations and algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 99(C), pages 83-112.
    3. Michael F. Gorman, 2021. "Contextual Complications in Analytical Modeling: When the Problem is Not the Problem," Interfaces, INFORMS, vol. 51(4), pages 245-261, July.
    4. Wang, Xinchang, 2016. "Optimal allocation of limited and random network resources to discrete stochastic demands for standardized cargo transportation networks," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 310-331.
    5. Long Gao & Jim (Junmin) Shi & Michael F. Gorman & Ting Luo, 2020. "Business Analytics for Intermodal Capacity Management," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 310-329, March.
    6. 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.
    7. Wang, Xinchang, 2016. "Stochastic resource allocation for containerized cargo transportation networks when capacities are uncertain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 334-357.
    8. Michael F. Gorman, 2016. "From Magnum Opus to Mea Culpa: A Cautionary Tale of Lessons Learned from a Failed Decision Support System," Interfaces, INFORMS, vol. 46(2), pages 183-195, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael F. Gorman, 2021. "Contextual Complications in Analytical Modeling: When the Problem is Not the Problem," Interfaces, INFORMS, vol. 51(4), pages 245-261, July.
    2. Santiago R. Balseiro & David B. Brown & Chen Chen, 2021. "Dynamic Pricing of Relocating Resources in Large Networks," Management Science, INFORMS, vol. 67(7), pages 4075-4094, July.
    3. Wang, Tao & Guo, Jia & Zhang, Wei & Wang, Kai & Qu, Xiaobo, 2024. "On the planning of zone-based electric on-demand minibus," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 186(C).
    4. Cao, Kaiying & Xu, Yuqiu & Hua, Ye & Choi, Tsan-Ming, 2023. "Supplier or co-optor: Optimal channel and logistics selection problems on retail platforms," European Journal of Operational Research, Elsevier, vol. 311(3), pages 971-988.
    5. 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.
    6. Anton Braverman & J. G. Dai & Xin Liu & Lei Ying, 2019. "Empty-Car Routing in Ridesharing Systems," Operations Research, INFORMS, vol. 67(5), pages 1437-1452, September.
    7. Büther, Marcel & Briskorn, Dirk, 2007. "Reducing the 0-1 knapsack problem with a single continuous variable to the standard 0-1 knapsack problem," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 629, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    8. Michael F. Gorman, 2023. "Case Article—Louisiana Branch Lines," INFORMS Transactions on Education, INFORMS, vol. 23(3), pages 139-143, May.
    9. Michael F. Gorman & Jayden Hoff & Robert Kinion, 2009. "ASP, The Art and Science of Practice: Tales from the Front: Case Studies Indicate the Potential Pitfalls of Misapplication of Lean Improvement Programs," Interfaces, INFORMS, vol. 39(6), pages 540-548, December.
    10. George, David K. & Xia, Cathy H., 2011. "Fleet-sizing and service availability for a vehicle rental system via closed queueing networks," European Journal of Operational Research, Elsevier, vol. 211(1), pages 198-207, May.
    11. Long He & Guangrui Ma & Wei Qi & Xin Wang, 2021. "Charging an Electric Vehicle-Sharing Fleet," Manufacturing & Service Operations Management, INFORMS, vol. 23(2), pages 471-487, March.
    12. Retsef Levi & Ana Radovanović, 2010. "Provably Near-Optimal LP-Based Policies for Revenue Management in Systems with Reusable Resources," Operations Research, INFORMS, vol. 58(2), pages 503-507, April.
    13. Sanjay L. Ahire & John B. Jensen, 2017. "Snider Tire Optimizes Its Customers-Stores-Plants Transportation Network," Interfaces, INFORMS, vol. 47(2), pages 150-162, April.
    14. Van der Heide, G. & Roodbergen, K.J., 2013. "Transshipment and rebalancing policies for library books," European Journal of Operational Research, Elsevier, vol. 228(2), pages 447-456.
    15. Long Gao & Jim (Junmin) Shi & Michael F. Gorman & Ting Luo, 2020. "Business Analytics for Intermodal Capacity Management," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 310-329, March.
    16. Hoseinpour, Pooya & Ahmadi-Javid, Amir, 2016. "A profit-maximization location-capacity model for designing a service system with risk of service interruptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 96(C), pages 113-134.
    17. Ruhollah Heydari & Emanuel Melachrinoudis, 2017. "A path-based capacitated network flow model for empty railcar distribution," Annals of Operations Research, Springer, vol. 253(2), pages 773-798, June.
    18. Zhang, Xiaoju & Zeng, Qingcheng & Sheu, Jiuh-Biing, 2019. "Modeling the productivity and stability of a terminal operation system with quay crane double cycling," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 181-197.
    19. Long He & Ho-Yin Mak & Ying Rong & Zuo-Jun Max Shen, 2017. "Service Region Design for Urban Electric Vehicle Sharing Systems," Manufacturing & Service Operations Management, INFORMS, vol. 19(2), pages 309-327, May.
    20. Shuang Chen & Joseph Geunes, 2013. "Optimal allocation of stock levels and stochastic customer demands to a capacitated resource," Annals of Operations Research, Springer, vol. 203(1), pages 33-54, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:40:y:2010:i:5:p:368-384. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.