Consolidating and Dispatching Truck Shipments of Mobil Heavy Petroleum Products

Dan O. Bausch, Gerald G. Brown and David Ronen
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Dan O. Bausch: INSIGHT, Inc., 19820 Village Office Court, Bend, Oregon 97702
Gerald G. Brown: Operations Research (OR/BW), Naval Postgraduate School, Monterey, California 93943
David Ronen: School of Business Administration, University of Missouri—St. Louis, 8001 Natural Budge Road, St. Louis, Missouri 63121

Interfaces, 1995, vol. 25, issue 2, 1-17

Abstract: Mobil Oil Corporation consolidates and dispatches truck shipments of heavy petroleum products—lubricants in packages and in bulk—from 10 lubricant plants nationwide. It dispatches hundreds of orders daily either individually or as consolidated truckloads, using a very nonhomogeneous fleet of Mobil-controlled and contract vehicles and common carriers. Shipment schedules may span several days and include stops to pick up returned drums or entire trailers. Shipping costs depend upon the vehicle used, the shipment size, the locations of the stops, and the route distance and time. Candidate consolidations are generated automatically or with dispatcher assistance. Then, the dispatcher uses optimization to select a minimal-cost set of schedules. Mobil has been using this system for three years, reducing annual transportation costs by about $1 million (US).

Keywords: industries: petrolium/natural gas; transportation: route selection (search for similar items in EconPapers)
Date: 1995
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