Improving the Return Loading Rate Problem in Northwest China Based on the Theory of Constraints

Wen-Tso Huang, Cheng-Chang Lu and Jr-Fong Dang
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Wen-Tso Huang: Department of Business Administration, Chung Yuan Christian University, Chung Li District, Taoyuan City 320314, Taiwan
Cheng-Chang Lu: Financial Management Programme, Beijing Institute of Technology, Zhuhai, College of Global Talents, No.6, Jinfeng Rd., Tangjiawan, Zhuhai 519088, China
Jr-Fong Dang: Department of Industrial Engineering and Systems Management, Feng Chia University, 100 Wenhwa Road, Taichung 407802, Taiwan

Mathematics, 2021, vol. 9, issue 12, 1-15

Abstract: This paper introduces how to improve the return loading rate problem by integrating the Sub-Tour reversal approach with the method of the Theory of Constraints (TOC). The proposed model generates the initial solution derived by the Sub-Tour reversal approach in phase 1 and then applies TOC to obtain the optimal solution, meeting the goal of improving the return loading rate to more than 50% and then lowering the total transportation distance in phase 2. To see our model capability, this study establishes an original distribution layout to compare the performance of the Sub-Tour reversal approach with our model, based on the simulation data generated by the Monte Carlo simulation. We also conduct the pair t -test to verify our model performance. The results show that our proposed model outperforms the Sub-Tour reversal approach in a significant manner. By utilizing the available data, our model can be easily implemented in the real world and efficiently seeks the optimal solutions.

Keywords: TOC; return loading rate; logistics; total transport distance; northwest China (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2021
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