The performance of route modification and demand stabilization strategies in stochastic vehicle routing

A key concern in managing vehicle routing operations under stochastic demands is whether, on the basis of travel distance, route modification yields materially greater logistical efficiency than fixed routes. This research uses statistical calibration as the primary technique to develop a robust and tractable model for estimating this difference in logistical efficiency. Based on features such as the models predictive accuracy and generalizability, it constitutes a substantive improvement over existing models. The present study also expands the range of predictive models relevant to vehicle routing under stochastic demands with models to estimate the transportation and inventory effects of persuading customers to stabilize their ordering patterns.     

A frequency-based maritime container assignment model

This paper transfers the classic frequency-based transit assignment method of Spiess and Florian to containers demonstrating its promise as the basis for a global maritime container assignment model. In this model, containers are carried by shipping lines operating strings (or port rotations) with given service frequencies. An origin–destination matrix of full containers is assigned to these strings to minimize sailing time plus container dwell time at the origin port and any intermediate transhipment ports. This necessitated two significant model extensions. The first involves the repositioning of empty containers so that a net outflow of full containers from any port is balanced by a net inflow of empty containers, and vice versa. As with full containers, empty containers are repositioned to minimize the sum of sailing and dwell time, with a facility to discount the dwell time of empty containers in recognition of the absence of inventory. The second involves the inclusion of an upper limit to the maximum number of container moves per unit time at any port. The dual variable for this constraint provides a shadow price, or surcharge, for loading or unloading a container at a congested port. Insight into the interpretation of the dual variables is given by proposition and proof. Model behaviour is illustrated by a simple numerical example. The paper concludes by considering the next steps toward realising a container assignment model that can, amongst other things, support the assessment of supply chain vulnerability to maritime disruptions.     

Increasing the capacity of signalized intersections with separate left turn phases

A separate turn phase is often used on the approach leg to an intersections with heavy left turns. This wastes capacity on the approach because some of its lanes cannot discharge during its green phases. The paper shows that the problem can be eliminated by reorganizing traffic on all the lanes upstream of an intersection using a mid-block pre-signal. If drivers behave deterministically, the capacity that can be achieved is the same as if there were no left turns. However, if the reorganization is too drastic, it may be counterintuitive to drivers. This can be remedied by reorganizing traffic on just some of the available lanes. It is shown that such partial reorganization still increases capacity significantly, even if drivers behave randomly and only one lane is reorganized. The paper shows how to optimize the design of a pre-signal system for a generic intersection. It also identifies both, the potential benefits of the proposed system for a broad class of intersections, and the domain of application where the benefits are most significant.     

Public/private-sector cooperation in urban transportation: Lessons from ridesharing experiences in Connecticut

An important characteristic of urban transportation policy and planning today is the increasing role that the private sector is playing in identifying and implementing transportation projects. For example, a recent examination of the possible forms of such involvement found that there were four major categories of action that could be used to classify recent private-sector efforts in urban transportation: (1) aid to and/or provision of transportation services; (2) formation of advocacy or advisory groups whose purpose is to influence public policy; (3) sponsorship of transportation studies; and (4) provision of management assistance to public agencies (Gordon, 1982). In many of these efforts, the successful implementation of a project or program required close cooperation between public and private-sector officials. The purpose of this paper is to examine the characteristics of this interaction and explore the implications for transportation planning and policy.Examples of public/private-sector interaction in two Connecticut cities, Hartford and Stamford, are used to illustrate the characteristics of successful transportation program implementation. Although the examples are limited to two cities, and are mainly concerned with one major category of action (ridesharing), the characteristics of the process used and of the results can be applied to other situations where public/privatesector interaction is desired.     

Parking policy and urban goals: Linking strategy to needs

Parking management strategies have traditionally been used as a means of accommodating traffic demand, with little or no effort made to identify how such strategies might relate to other urban objectives. In this paper, parking management strategies are classified according to the control they exert over the amount of aggregate parking supply, access to parking, spatial distribution of parking supply, or dollar price of parking. Six general categories of urban policy objectives are identified, and the relationship between parking strategies and these objectives analyzed. The parking program in Baltimore is used to illustrate some of the relationships identified in this analysis. This paper concludes that the linkage between parking and the attainment of some urban objectives is potentially quite strong, and that further empirical research is needed to fully establish this relationship. Several different directions for further research are also identified.     

The dynamic relationships between paper petroleum refining and physical trade of crude oil into the United States

This article examines the relationship between refinery margins traded on paper using petroleum futures (the paper refinery) and the physical trade of crude oil into the US. Computations of a 3:2:1 crack spread were constructed using daily observations of second- and third-nearby unleaded gasoline and heating oil futures contracts traded on the New York Mercantile Exchange (NY MEX) and spot Brent crude oil prices. The crack spread represents the margin between the cost of crude oil feed stock today and the value of the products produced by a refinery in the future. Unit root tests on each of the time series found crack spreads to be stationary while crude oil imports were found to be non-stationary. A s the two series were found to be integrated of different order, cointegration analysis of the two series was not deemed appropriate. Instead, linear relationships between crack spreads and imports were examined using causality tests. It was found that the 2-month 3:2:1 crack spread Granger-causes crude oil imports and that this causality is unidirectional. The significance of these findings lies in the fact that other industries like tanker shipping derive their demand from the demand for, and trade in, petroleum. Crack spreads, therefore, can provide a leading indicator for short term developments in tanker demand. For a chartering manager who has ships on the spot market, crack spreads can help him/her anticipate demand developments and influence vessel deployment and chartering decisions.     

Devising business strategy for railways

This paper presents a case study which tackles a general problem for railway management, namely the formulation of a strategy to improve business financial performance. This is prefaced, in Section 2, by discussion of general principles - concerning the type of information system required, investigations to be conducted and associated measurement needs. The case study, of Section 3, concerns our investigations of VicRail's total business and its constituents. The task of financial improvement is revealed from an assessment of sectors' current cost-recovery positions and the identification of system joint costs. For freight sectors, future traffic prospects, pricing possibilities and the scope for more efficient operations are then considered, and the implications traced for overall deficit reduction and the development of business strategy. The concluding section draws some general lessons for railway managements.A fuller discussion by the authors of the theoretical framework employed, and particularly of the case study application, is contained in a complimentary publication: Improving Railway Financial Performance, published by Gower in January 1985.Transmark is a subsidiary of the British Railways Board, acting as its international consultancy. The authors, who were respectively study director and manager, wish to thank Bernard Warner (an independent consultant), Richard Eccles (of Transmark) and Adrian Balkyn-Rackowe (of British Rail) for their valuable contributions. The study report, titled Rail Cost — Pricing Options, was released by the Minister in April 1981.     

A link-node complementarity model and solution algorithm for dynamic user equilibria with exact flow propagations

In this paper, we propose a link-node complementarity model for the basic deterministic dynamic user equilibrium (DUE) problem with single-user-class and fixed demands. The model complements link-path formulations that have been widely studied for dynamic user equilibria. Under various dynamic network constraints, especially the exact flow propagation constraints, we show that the continuous-time dynamic user equilibrium problem can be formulated as an infinite dimensional mixed complementarity model. The continuous-time model can be further discretized as a finite dimensional non-linear complementarity problem (NCP). The proposed discrete-time model captures the exact flow propagation constraints that were usually approximated in previous studies. By associating link inflow at the beginning of a time interval to travel times at the end of the interval, the resulting discrete-time model is predictive rather than reactive. The solution existence and compactness condition for the proposed model is established under mild assumptions. The model is solved by an iterative algorithm with a relaxed NCP solved at each iteration. Numerical examples are provided to illustrate the proposed model and solution approach. We particularly show why predictive DUE is preferable to reactive DUE from an algorithmic perspective.