An optimization approach for planning daily drayage operations

Abstract

Daily drayage operations involve moving loaded or empty equipment between customer locations and rail ramps. Our goal is to minimize the cost of daily drayage operations in a region on a given day. Drayage orders are generally pickup and delivery requests with time windows. The repositioning of empty equipment may also be required in order to facilitate loaded movements. The drayage orders are satisfied by a heterogeneous fleet of drivers. Driver routes must satisfy various operational constraints. We present an optimization methodology for finding cost-effective schedules for regional daily drayage operations. The core of the formulation is a set partitioning model whose columns represent routes. Routes are added to the formulation by column generation. We present numerical results for real-world data which demonstrate that our methodology produces low cost solutions in a reasonably short time.