Decentralized Inventory Control Strategies for Fleet and Crew Allocation in the Less-Than-Truckload Motor Carrier Industry

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9500088 Hall The objective of this research is to develop models and algorithms that can be used by individual trucking terminals for the purpose of fleet and crew assignment. The models will specify the control levels, analogous to 're-order levels' in inventory theory for the purpose of 1) releasing equipment and crews to other terminals, 2) requesting equipment and crews from other terminals, and 3) allocating crews/equipment to or from a specified terminal. The allocation would be performed in a decentralized manner with the objective of minimizing system-wide costs. Other objectives of the research include 1) the development of simulation and analytical models to optimize on control rules and, 2) compare alternative strategies for fleet and crew management, and evaluate the control rules through pilot testing in an actual industrial setting to determine how to adapt the strategies to work within the organizational structure of a motor carrier enterprise. The problem addressed in this research is very important to the trucking industry. This research has the potential to advance the theory of transportation networks by building from an important application. The problem of equipment and crew management has a significant economic impact on the trucking industry. Major economic benefits can be gained if techniques for better management of these resources are developed.