Dynamic and Stochastic Shipment Matching Problem in Multimodal Transportation

Abstract

Multimodal transportation, as an efficient and sustainable alternative to unimodal transportation, refers to the utilization of multiple modes, the utilization of standard loading units, and flexibility in planning. The complexity of multimodal transportation at the operational level lies in being able to deal with dynamic events that are unknown before their realization. However, stochastic information on some of the events might be available from historical data. This paper proposes an anticipatory optimization approach to handle dynamic shipment requests in multimodal transportation by incorporating stochastic information of requests’ origin, destination, volume, announce time, release time and due time. The experimental results show that the anticipatory approach outperforms a myopic approach in which decisions are made only based on deterministic information in reducing total costs under various scenarios of the multimodal matching system.