The importance of considering non-linear layover and delay costs for local truckers

• Published in: Transportation research. Part E, Logistics and transportation review Logistics and transportation review, 2018-01, Vol.109, p.331-355
• Main Authors: Zolfagharinia, Hossein, Haughton, Michael
• Format: Article
• Language: English
• Subjects: Collaborative transportation; Integer programming; Mixed integer non-linear programming; Time window discretization; Traffic imbalance; Truckload transportation
• ISSN: 1366-5545; 1878-5794
• DOI: 10.1016/j.tre.2017.10.007

•The problem is modeled as mixed integer non-linear programming.•The solution method can handle general layover and delay cost functions.•We illustrate the importance of nonlinearity to improve a carrier’s performance.•Acknowledging nonlinearity can remarkably lower operational costs in some settings.•The benefit of collaboration is remarkably higher when traffic imbalance exists. Adopting a time-discretization method, we propose an iterative algorithm that solves a series of integer programming models to effectively handle non-linear costs in the trucking industry. The numerical analysis illustrates the importance of acknowledging nonlinear costs in improving the operational performance of local carriers specifically under the following conditions: (a) limited advance load information, (b) high load density, and (c) high traffic imbalance. This improvement can reach an average of 8.5% when subcontracting cost is high. Furthermore, we statistically analyze the impact of various factors (e.g., traffic imbalance) on the performance of a carrier with nonlinear costs.