Dynamic Truckload Routing, Scheduling, and Load Acceptance for Large Fleet Operation with Priority Demands

Abstract

Dynamic load acceptance and rejection decisions in dynamic (online) truckload routing and scheduling problems with time windows when the carrier provides two classes of service are analyzed. The delivery service is classified into two types, priority and regular service, with different price rates corresponding to various customer requirements in terms of time sensitivity and price sensitivity. For this problem, a mixed-integer programming formulation is provided to solve a static version of the problem. Then, a dynamic acceptance-rejection policy is proposed and tested as a part of dynamic operation policy, in which the decision should be made on arrival of the demand or at least in a short time. This acceptance decision, based on the system state (the vehicles' locations, status, and scheduled demands) at a decision moment, represents the approximation of the expected number of vehicles able to serve future (still unrealized) priority demand. Simulation experiments conducted to evaluate the relative performance show that the proposed policy significantly improves overall profit compared with those obtained with the benchmark policies.