CONSOLIDATING AND DISPATCHING TRUCK SHIPMENTS OF MOBIL HEAVY PETROLEUM-PRODUCTS

Citation
Do. Bausch et al., CONSOLIDATING AND DISPATCHING TRUCK SHIPMENTS OF MOBIL HEAVY PETROLEUM-PRODUCTS, Interfaces, 25(2), 1995, pp. 1-17
Citations number
7
Categorie Soggetti
Management,"Operatione Research & Management Science
Journal title
ISSN journal
00922102
Volume
25
Issue
2
Year of publication
1995
Pages
1 - 17
Database
ISI
SICI code
0092-2102(1995)25:2<1:CADTSO>2.0.ZU;2-T
Abstract
Mobil Oil Corporation consolidates and dispatches truck shipments of h eavy petroleum products-lubricants in packages and in bulk-from 10 lub ricant plants nationwide. It dispatches hundreds of orders daily eithe r individually or as consolidated truckloads, using a very nonhomogene ous fleet of Mobil-controlled and contract vehicles and common carrier s. Shipment schedules may span several days and include stops to pick up returned drums or entire trailers. Shipping costs depend upon the v ehicle used, the shipment size, the locations of the stops, and the ro ute distance and time. Candidate consolidations are generated automati cally or with dispatcher assistance. Then, the dispatcher uses optimiz ation to select a minimal-cost set of schedules. Mobil has been using this system for three years, reducing annual transportation;costs by a bout $1 million (US).