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Integrated optimization of operations and capacity planning under uncertainty for drayage procurement in container logistics

Published: May 3, 2025 | arXiv ID: 2505.01808v1

By: Georgios Vassos, Richard Lusby, Pierre Pinson

Potential Business Impact:

Saves money shipping goods by trucks.

Business Areas:
Logistics Transportation

We present an integrated framework for truckload procurement in container logistics, bridging strategic and operational aspects that are often treated independently in existing research. Drayage, the short-haul trucking of containers, plays a critical role in intermodal container logistics. Using dynamic programming, we identify optimal operational policies for allocating drayage volumes among capacitated carriers under uncertain container flows and spot rates. The computational complexity of optimization under uncertainty is mitigated through sample average approximation. These optimal policies serve as the basis for evaluating specific capacity arrangements. To optimize capacity reservations with strategic and spot carriers, we employ an efficient quasi-Newton method. Numerical experiments demonstrate significant cost-efficiency improvements, including a 21.2% cost reduction in a four-period scenario. Monte Carlo simulations further highlight the strong generalization capabilities of the proposed joint optimization method across out-of-sample scenarios. These findings underscore the importance of integrating strategic and operational decisions to enhance cost efficiency in truckload procurement under uncertainty.

Page Count
36 pages

Category
Mathematics:
Optimization and Control