A Simulation Model for LTL Trucking Network

Fubin Qian and Yue Xu
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Fubin Qian: Molde University College, Norway
Yue Xu: Molde University College, Norway

International Journal of Information Systems and Supply Chain Management (IJISSCM), 2012, vol. 5, issue 3, 78-87

Abstract: Service network design (SND) is a part of tactical planning activities of transportation companies. Less-than-truckload (LTL) trucking industry has been steadily expanding the market share in the past decades, due to its operational flexibility and high efficiency. In order to provide flexible and robust service schedule for LTL carriers, stochasticity is explicitly taken into account when formulating the SND problem. Service schedules derived from the stochastic model show structural difference with its deterministic counterparts. This research project develops a simulation model of an LTL network, in order to evaluate the system performance of LTL network with the stochastic schedule. A set of experiments shows that the stochastic solution performs very well when it is confronted with random customer demands. Furthermore, the stochastic schedule is much better than the deterministic one in terms of the proportion of undelivered commodities.

Date: 2012
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