Type of optimization

Rate optimization: is the most obvious goal, moving freight at the lowest possible cost, while still achieving what we need in terms of service, volume, time table, and carrier performance.

 Route optimization: Router optimization means constructing routes, pickups, and drops in the most efficient way possible. Most of the time the dovetails with rate optimization but always.

The software decided to send shipments on a separate truck

Load optimization: we can approach the problem from the aspect of load optimization, with our focus on maximizing weight, cube or pallets count on as few trucks as possible. One of our main goals hear is realizing the benefit of break ranges that give us an incentive to fill the truck.

Network optimization: can be the major factor for a lot of companies. Network optimization means you are driven by the needs of your structure. Maybe you have pool point systems, warehouse or distribution centers. Maybe product X hast to go through facility Y and not facility Z. We might need to consider facility cost, operation hours and labor availability as we build our routers.

We’ve just names four philosophies including: Rate, route, load, and networks. Sometime you’ll be pursuing one to the exclusion of all others, and sometime you’ll naturally be achieving more than one kind of optimization at one.

Optimization constraint.

If we’ve just organization a few shipments, a few destinations, and a few ship dates, then maybe any of us could do just about well putting them together.

Some factors including:

Location constraints: operation hours, limits on service, mode, carrier

Route constraints: required order of events (pickup/drop) max out of route limit

Vehicle constraints: Max weight, quantity, cube

Driver constraints: Duty/driving limits

Freight constraints:  incompatible cargo types

Carrier constraints: #vehicles available per lane/day

Dock constraints: # facilities, operation hours

Pooling constraints: required/preassigned pool locations.

Typical optimization Run

At a minimum, all that major need to optimize it 2 kinds of data: a list of shipments, and a table of carrier rate.

Shipment data must contain at least:

  • A unique identifying filed for each shipment
  • Origin and destination information
  • Pickup and delivery time window
  • Weight

Remaining wizard screen.

  • Hypothetical changes in fuel costs
  • The maximum permitted out of route rate
  • Max truck weigh, quantity, cube, max stops per route
  • Compatible and incompatible freight type
  • Service time(loading/unload)
  • Operating hours of pickup/ drop locations
  • Dat window flexibility
  • Driver duty limits
  • Driver duty limits
  • Carrier vehicle availability
  • Driver duty limits
  • Carrier vehicle availability
  • Dock capacity limits by location
  • Pool strategy whether to use pool points and how
  • Whether to enforce service and equipment requirements
  • Pickup and drop clustering where possible