• Management Science and Financial Engineering
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• v.8 no.2
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• pp.33-45
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• 2002

This study suggests an approach for determining fleet size for LTL (less -than-truckload) transportation with dynamic demand for on-time supply of the parts between the assembly line in an automobile company and its part suppliers in Korea. The vehicles operated by the transportation trucking companies in Korea in general can be classified into three types depending on the ways how their expenses occur; company -owned truck, mandated truck which is owned by outsider who entrusts the company with its operation, and rented truck (outsourcing) . With the forecasted monthly production data a year, a heuristic algorithm is developed to determine the number of company-owned trucks, mandated trucks, and rented trucks in order to minimize the expected annual operating cost, which is based on the solution technologies used in the aggregate production planning and vehicle routing problem. Finally the algorithm is tested for the problem how the trucking company transports parts for the automobile company.

• IE interfaces
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• v.17 no.1
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• pp.71-77
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• 2004

At the present time, container transportation plays a key role in the international logistics and the efforts to increase the productivity of container logistics become essential for Korean trucking companies to survive in the domestic as well as global competition. This study suggests an approach for determining fleet size for container road transportation with dynamic demand. Usually the vehicles operated by the transportation trucking companies in Korea can be classified into three types depending on the ways how their expenses occur; company-owned truck, mandated truck which is owned by outsider who entrust the company with its operation, and rented vehicle (outsourcing). Annually the trucking companies should decide how many company-owned and mandated trucks will be operated considering vehicle types and the transportation demands. With the forecasted monthly data for the volume of containers to be transported a year, a heuristic algorithm using tabu search is developed to determine the number of company-owned trucks, mandated trucks, and rented trucks in order to minimize the expected annual operating cost. The idea of the algorithm is based on both the aggregate production planning (APP) and the pickup-and-delivery problem (PDP). Finally the algorithm is tested for the problem how the trucking company determines the fleet size for transporting containers.

• Journal of Korean Institute of Industrial Engineers
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• v.35 no.1
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• pp.1-14
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• 2009

The efficiency of transportation requests fulfillment can be increased through extending the problem of vehicle routing and scheduling by the possibility of subcontracting a part of the requests to external carriers. This problem extension transforms the usual vehicle routing and scheduling problems to the more general integrated operational transportation problems. In this contribution, we analyze the motivation, the chances, the realization, and the challenges of the integrated operational planning and report on experiments for extending the plain Vehicle Routing Problem to a corresponding problem combining vehicle routing and request forwarding by means of different sub-contraction types. The extended problem is formalized as a mixed integer linear programming model and solved by a commercial mathematical programming solver. The computational results show tremendous costs savings even for small problem instances by allowing subcontracting. Additionally, the performed experiments for the operational transportation planning are used for an analysis of the decision on the optimal fleet size for own vehicles and regularly hired vehicles.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2002.05a
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• pp.171-178
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• 2002

At the present time, container transportation plays a key role in the international logistics and the efforts to increase the productivity of container logistics become essential for Korean trucking companies to survive in the domestic as well as global competition. This study suggests an approach for determining fleet size for container road transportation with dynamic demand. Usually the vehicles operated by the transportation trucking companies in Korea can be classified into three types depending on the ways how their expenses occur; company-owned truck, mandated truck which is owned by outsider who entrust the company with its operation, and rented vehicle (outsourcing). Armually the trucking companies should decide how many company-owned and mandated trucks will be operated considering vehicle types and the transportation demands. With the forecasted monthly data for the volume of containers to be transported a year, a heuristic algorithm using tabu search is developed to determine the number of company-owned trucks, mandated trucks, and rented trucks in order to minimize the expected annual operating cost The idea of the algorithm is based on both the aggregate production planning (APP) and the pickup-and-delivery problem (PDP). Finally the algorithm is tested for the problem how the trucking company determines the fleet size for transporting containers.