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Cooperation in Urban Transportation

Cooperation in Urban Transportation. Tom Van Woensel. Menu for today. Urban environments Horizontal collaboration between LSPs Analysis and discussion Planning and scheduling of their operations: Vehicle Routing Problems Gain sharing mechanisms

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Cooperation in Urban Transportation

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  1. Cooperation in Urban Transportation Tom Van Woensel

  2. Menu for today • Urban environments • Horizontal collaboration between LSPs • Analysis and discussion • Planning and scheduling of their operations: Vehicle Routing Problems • Gain sharing mechanisms • Collaboration between public and freight transport Caveat emptor: ongoing work ! / School of Industrial Engineering - prof. dr. Tom Van Woensel

  3. Urban Environments and Transportation • Transportation demand is growing and expected to continue growing • Last-mile logistics is more and more situated in growing urban areas: • Increasing urban population growth • (Over)congested • Difference with emerging cities • Both internal costs and the external costs are key logistics drivers • Decarbonisation to reduce pollution / School of Industrial Engineering - prof. dr. Tom Van Woensel

  4. Urban Environments and Transportation • Quality (e.g. carbon footprint) and quantity (e.g. transport movements) of the distribution activities • Better orchestration of the different physical flows by considering all relevant stakeholders • Retailers • LSPs • Government • Public • Coordination and consolidation challenges are not new, but sound and sustainable solutions are not easily realized. / School of Industrial Engineering - prof. dr. Tom Van Woensel

  5. (The lack of) Cooperation and coordination in urban transportation / School of Industrial Engineering - prof. dr. Tom Van Woensel

  6. Routing and Scheduling in urban areas / School of Industrial Engineering - prof. dr. Tom Van Woensel

  7. Two-index formulation for VRP v0 / School of Industrial Engineering - prof. dr. Tom Van Woensel

  8. VRP and Time windows cost trav. from i to j =1 if vehicle k drives directly from i to j ASSIGNMENT demand at customer i CAPACITY capacity of vehicle k time to travel directly from i to j plus service time in i FLOW depot at start CONSER- depot at end The time vehicle k starts Servicing customer j VATION large number TIME WINDOWS / School of Industrial Engineering - prof. dr. Tom Van Woensel

  9. Three Dutch carriers Transport management system • Parameters • > 3plts • north NL • HACCP • Non smelling • …. • Parameters • unrestricted • LZV only • TLN member • Digital VVA • …. • Parameters • FTL only • Digital VVA • chilled • …. dashboard LSP 1 dashboard LSP 2 dashboard LSP 3 / School of Industrial Engineering - prof. dr. Tom Van Woensel

  10. Three carriers consolidated Gain sharing mechanisms needed / School of Industrial Engineering - prof. dr. Tom Van Woensel

  11. Collaboration among Logistics Service Providers / School of Industrial Engineering - prof. dr. Tom Van Woensel

  12. Some variants to the problem Cooperation: Distance = 828.94 with 10 vehicles C/R = Country/Regional player / School of Industrial Engineering - prof. dr. Tom Van Woensel

  13. What about the cost savings? • Cost savings are not always equal over all partners • Limited savings if no synergy in the networks / School of Industrial Engineering - prof. dr. Tom Van Woensel

  14. How to share the benefits? • Shapley value for player i: • Allocates to each participant its average marginal contribution • Complete random order of entering of participants • For two players: • Equal allocation of the total value of cooperation • Regardless of the specific characteristics (e.g. size, orders, etc.) of the two players / School of Industrial Engineering - prof. dr. Tom Van Woensel

  15. Side Payments are needed A transparent and clear cost accounting system is needed / School of Industrial Engineering - prof. dr. Tom Van Woensel

  16. What about shippers? How certain are we about this? • Tariffs adapted following LSP collaborations • Proposal: follow Shapley allocation • Two players: Shipper and LSP • 50/50 allocation rule / School of Industrial Engineering - prof. dr. Tom Van Woensel

  17. What about time and stochasticity? • Volumes offered to the coalition • Changes over time, contracts, tenders, etc. • How to cope with this if one partner falls behind? • Consequences are significant / School of Industrial Engineering - prof. dr. Tom Van Woensel

  18. What do we need? • Sound concepts for gain sharing: • That survive over time and uncertainty • That are fast measurable/quantifiable throughout the collaborations • That consider the dynamics and stochastics of the LSP and shipper’s world • A gain sharing control tower? • Neutral instance • Open bookkeeping with regards to costs / School of Industrial Engineering - prof. dr. Tom Van Woensel

  19. A different cooperation • Combine passenger transport and freight transport • Different levels: • Share dedicated resources, e.g. priority lanes • Share equipment: taxi, bus, train, boat • Some examples: • Passenger airplanes also carry freight • Norwegian Hurtigruten: mail, cargo and passengers • Dabbawalla / School of Industrial Engineering - prof. dr. Tom Van Woensel

  20. Dabbawalla 0% fuel, 0% investment, 0% modern tech, 0% Disputes, 99.99% performance, 100 % Customers Satisfaction 400,000 transactions every day (including return), i.e. 400,000*25 days*12 months= 120,000,000 transactions per year / School of Industrial Engineering - prof. dr. Tom Van Woensel

  21. Point of Aggregation And Sorting A E B D C Collection from home The Flow Logic: using trains! Zones for destination Grant Road (12) 1 2 3 Churchgate (1-10) 4 5 6 Lower Parel (14) 7 Distribution By Carriers at lunchtime To offices / School of Industrial Engineering - prof. dr. Tom Van Woensel

  22. Using taxi’s for parcel deliveries / School of Industrial Engineering - prof. dr. Tom Van Woensel

  23. Trail of one taxi in San Francisco (1 day) / School of Industrial Engineering - prof. dr. Tom Van Woensel

  24. Trail of 30 taxis in San Francisco (1 day) / School of Industrial Engineering - prof. dr. Tom Van Woensel

  25. Taxis for parcel delivery • Online optimization • Stochastic customers • Stochastic demand • Pickup and delivery problems • Using taxis for parcels: • Utilized (with customer): time value? • Available (no customer): use the ‘dead’ time • Joint work started with Connexxion for The Netherlands • PhD research of Baoxiang Li / School of Industrial Engineering - prof. dr. Tom Van Woensel

  26. Overview and summary • Collaboration among LSP • Gain sharing principles • How to translate this into practice? • The role of shippers in the collaborations • Collaboration between public and freight transport • Interesting research questions arise • Still an open research field / School of Industrial Engineering - prof. dr. Tom Van Woensel

  27. Thank you.Any questions/suggestions/comments? / School of Industrial Engineering - prof. dr. Tom Van Woensel

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