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Greedy Algorithms for the Freight Consolidation Problem

Authors: Zuguang Gao, John R. Birge, Richard Li-Yang Chen, and Maurice Cheung

Published in: OASIcs, Volume 106, 22nd Symposium on Algorithmic Approaches for Transportation Modelling, Optimization, and Systems (ATMOS 2022)


Abstract
We define and study the (ocean) freight consolidation problem (FCP), which plays a crucial role in solving today’s supply chain crisis. Roughly speaking, every day and every hour, a freight forwarder sees a set of shipments and a set of containers at the origin port. There is a shipment cost associated with assigning each shipment to each container. If a container is assigned any shipment, there is also a procurement cost for that container. The FCP aims to minimize the total cost of fulfilling all the shipments, subject to capacity constraints of the containers. In this paper, we show that no constant factor approximation exists for FCP, and propose a series of greedy based heuristics for solving the problem. We also test our heuristics with simulated data and show that our heuristics achieve small optimality gaps.

Cite as

Zuguang Gao, John R. Birge, Richard Li-Yang Chen, and Maurice Cheung. Greedy Algorithms for the Freight Consolidation Problem. In 22nd Symposium on Algorithmic Approaches for Transportation Modelling, Optimization, and Systems (ATMOS 2022). Open Access Series in Informatics (OASIcs), Volume 106, pp. 4:1-4:19, Schloss Dagstuhl – Leibniz-Zentrum für Informatik (2022)


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@InProceedings{gao_et_al:OASIcs.ATMOS.2022.4,
  author =	{Gao, Zuguang and Birge, John R. and Chen, Richard Li-Yang and Cheung, Maurice},
  title =	{{Greedy Algorithms for the Freight Consolidation Problem}},
  booktitle =	{22nd Symposium on Algorithmic Approaches for Transportation Modelling, Optimization, and Systems (ATMOS 2022)},
  pages =	{4:1--4:19},
  series =	{Open Access Series in Informatics (OASIcs)},
  ISBN =	{978-3-95977-259-4},
  ISSN =	{2190-6807},
  year =	{2022},
  volume =	{106},
  editor =	{D'Emidio, Mattia and Lindner, Niels},
  publisher =	{Schloss Dagstuhl -- Leibniz-Zentrum f{\"u}r Informatik},
  address =	{Dagstuhl, Germany},
  URL =		{https://drops-dev.dagstuhl.de/entities/document/10.4230/OASIcs.ATMOS.2022.4},
  URN =		{urn:nbn:de:0030-drops-171086},
  doi =		{10.4230/OASIcs.ATMOS.2022.4},
  annote =	{Keywords: Freight consolidation, heuristics, greedy algorithm}
}
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