DYNAMIC VEHICLE ALLOCATION FOR FLEET MANAGEMENT: OPERATIONAL CHANGES FOR IMPROVED EFFICIENCY

Dynamic vehicle allocation is an important application of intelligent transportation systems (ITS) technologies to freight mobility. Telecommunications and information technologies provide opportunities for using real-time information to enhance the productivity and performance of fleet operations, particularly with respect to high priority and time-sensitive demands. Static computer-based dispatching and load assignment models can already improve the efficiency of fleet operations by taking into account current and predicted supplies of vehicles and demands for service, as well as conflicting multiple objectives with respect to cost, customer service, and driver and dispatcher job action. However, when either the level or timing of demands for service cannot be accurately predicted and when high priority or time-sensitive demands arise, the ability to respond dynamically as demands unfold, network conditions fluctuate and driver or equipment availability status changes is a key to providing reliable, responsive service at a reasonable cost. This research explores dispatching and load acceptance and dynamic pricing strategies possible with real-time information on vehicle locations and demands. A general fleet management system for carrier operations is described as are productivity enhancing operational changes possible under real-time information. Simulation model results illustrate a range of benefits under load acceptance and load (re)assignment strategies and suggest that one real-time dispatching strategy--diversion--can lead to a significant reduction in the efficiency of carrier operations.