Use of transportation relays to improve private fleet management

• Main Authors: Tsu, John, Agarwal, Mayank
• Other Authors: Chris Caplice.
• Format: Others
• Language: English
• Published: Massachusetts Institute of Technology 2010
• Subjects: Engineering Systems Division.
• Online Access: http://hdl.handle.net/1721.1/53544

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2009. === Includes bibliographical references (leaf 53). === We explore the use of transportation relays, a somewhat unconventional transportation operations concept, in terms of improving private fleet management. A transportation relay is a shipment that is divided into two legs. With transportation relays, there is more ways to route freight with a private fleet. We use a linear program to find private fleet tours with and without relays for a large retailer. We find that relays increase private fleet use by 17% and reduce total transportation cost by 6%. Inbound relays increase the utilization of private fleet on the inbound lanes while outbound relays shift the private fleet capacity between neighboring DCs. Together, inbound and outbound relays better utilize existing private fleet resources and can be used to justify an investment in a larger private fleet through the purchase of addition tractors and trailers. === by John Tsu and Mayank Agarwal. === M.Eng.in Logistics