ALTERNATE MODE DISPATCHING - THE IMPACT OF COST MINIMIZATION

When a shipper may use a variety of trucks to ship less-than-truckload shipments, shipping cost is the relevant criterion for evaluating alt ernate dispatches. This point is demonstrated by optimally solving 15 dispatching problems from industry in two ways, once minimising distan ce, and second time minimising costs, when a mixed private fleet and a common carrier are available. The distance minimising dispatches are, on the average, 35% more expensive than the corresponding cost minimi sing ones, but part of this difference stems from assumptions which ar e necessary to compare these two criteria.