Locating drivers in a trucking terminal network

We consider the problem of determining the home locations, or domiciles, of truck drivers for a less-than-truckload carrier. Domiciling decisions are complex, in part due to regulations and union rules restricting driver schedules, but have a significant impact on the operating costs of less-than-truckload carriers. We present an iterative scheme, using driver dispatch technology in each iteration, to allocate drivers to terminals and to determine drivers' bids so as to satisfy union requirements. Computational experiments demonstrate the value of the iterative scheme and quantify the impact of union rules on the number of drivers required (and the resulting operating costs).