NSF/USDOT: Agent-based Coordination in Public Logistics Networks

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A public logistics network is proposed as means to provide fast, flexible, and low-cost parcel transport. Similar to the dynamic pricing used to sell airline seats, a price for each available space on a truck and storage space at a distribution center (DC) could be negotiated in real time for each individual item. A third party can search the network for any type of item in transit, negotiate the purchase of the item, and redirected it to a new destination. As compared to private logistics networks, scale economies could be realized in performing each logistics function since each element of the network has access to potentially all of the network's demand. It would be possible for small cities and towns to have access to the same low-cost parcel delivery services that are currently only available in larger cities, and the need for on-site inventory storage would be reduced since finished-goods and safety stocks would be mobile and could be re-routed only when needed.The proposed research will focus on developing a specification of the information infrastructure necessary to realize public logistics networks together with a prototype implementation of the specification. A network covering the entire U.S. will be created and used as the base network structure in all subsequent work. The core of the specification will be an agent architecture and protocols for adaptive routing and in-transit trade. Based on the local price of transport and storage at each DC, the "best" route for the package is determined. Until the package reaches its final destination, its agents would remain at the DCs both to make it possible to re-route a package in case of any disruptions in the network and to serve as trading agents to negotiate the possible resale of the package. An important research issue is to determine what is the best combination of market and pricing mechanisms for the transport services in a public logistics network.