Cargo Container Loading Plan Model and Solution Method for International Air Express Carriers

Abstract

In this article, a cargo container loading plan model is developed based on the operations of FedEx, the international air express carrier. The objective is to minimize total container handling cost, subject to related operating constraints. The model is expected to be a useful planning tool whereby international air express carriers such as FedEx can decide on container loading plans that will lead to lower operating costs, thus enhancing profits and market competitiveness. The model is formulated as a non-linear mixed integer program that is characterized as NP-hard. A solution method is then developed, with the use of the mathematical programming solver, CPLEX, to solve the problem efficiently. To evaluate the model and the solution method, we perform a case study using data from FedEx. The preliminary results indicate that the model and the solution method are both efficient and effective.