Cargo logistics dispatch service with integrated pricing and scheduling
System and method that improves cargo logistics may be presented. For instance, shipping capacity in cargo logistics may be best utilized based on providing pricing and scheduling solutions that are jointly optimized and prices differentiated based on flexibility of service request. Scheduled service and pricing may be transmitted as a signal to control execution of the cargo logistics.
1. A method for cargo logistics, the method performed by at least one hardware processor, the method comprising:
receiving a service request for transporting cargo;
predicting a future demand for cargo services with a confidence level;
responsive to determining that the confidence level meets a threshold confidence level, executing a mixed integer program that jointly determines price and shipping schedule for transporting the cargo, based on inputs comprising the demand forecast, customer data, cargo characteristics, service request, network capacity and existing cargos to ship, the mixed integer program optimizing jointly the price and the shipping schedule;
responsive to determining that the confidence level does not meet the threshold confidence level, executing a dynamic program that dynamically determines the price and the shipping schedule based on input comprising the demand forecast, the customer data, the cargo characteristics, the service request, the network capacity and the existing cargos to ship; and
generating and transmitting a signal that dispatches the cargo for transportation according to the shipping schedule,
wherein the mixed integer program and the dynamic program are two different optimization programs, one executed over the other depending on whether or not the confidence level associated with the predicted future demand for cargo services meets the threshold confidence level.
2. The method of claim 1 , further comprising presenting the price and the shipping schedule via a user interface, wherein the generating is performed responsive to receiving an acceptance of the price and the shipping schedule via the user interface.
3. The method of claim 1 , wherein decision variables in the mixed integer program comprises:
x n (t,l) comprising a binary value representing a pricing decision, wherein the pricing decision=1 if p(t,l) is applied to a quote at period t, ready to ship at period t+l; and
y m (t,l) comprising a binary value representing an allocation decision, wherein the allocation decision=1 if demand Q(t,l) is planned to ship at period t+l+m;
wherein t=1, . . . , T representing time index with planning horizon=T,
l=0, . . . , L representing ready-to-ship period=t+l,
n=1, . . . , N representing index of price point, and
m=0, . . . , M representing ship time=t+l+m≤t+l+M, t+l+M representing latest time to ship.
4. The method of claim 3 , wherein the mixed integer program is solved subject to constraints comprising: only one of N list prices is selected in each period t ready to ship at t+l; a shipping demand after scheduling is jointly determined by the pricing decision and the allocation decision; only one of M time slots is selected; that total shipping demands does not exceed available capacity W(t) in each period t; and the pricing decision and the allocation decision variables are binary integers, specifying a list price to select and a shipping time slot to allocate.
5. The method of claim 1 , wherein the dynamic program calculates a total expected profit G t (U t ,W t ) in a recursive manner from period t to T, wherein decision variables in the dynamic program comprises p(t,l) representing continuous price decisions and y m (t,l) comprising a binary value representing an allocation decision wherein y m (t,l)=1 if quote (t,l) is planned to ship at t+l+m, wherein
t=1, . . . , T representing time index with planning horizon=T,
l=0, . . . , L representing ready-to-ship period=t+l,
m=0, . . . , M representing ship time=t+l+m≤t+l+M, t+l+M representing latest time to ship.
6. The method of claim 1 , wherein the shipping schedule comprises ready to ship date and latest ship date.
7. A computer program product for providing cargo logistics, the computer program product comprising a computer readable storage medium having program instructions embodied therewith, wherein the computer readable storage medium is not a transitory signal per se, the program instructions readable by a device to cause the device to perform a method comprising:
receiving a service request for transporting cargo;
predicting a future demand for cargo services with a confidence level;
responsive to determining that the confidence level meets a threshold confidence level, executing a mixed integer program that jointly determines price and shipping schedule for transporting the cargo, based on inputs comprising the demand forecast, customer data, cargo characteristics, service request, network capacity and existing cargos to ship, the mixed integer program optimizing jointly the price and the shipping schedule;
responsive to determining that the confidence level does not meet the threshold confidence level, executing a dynamic program that dynamically determines the price and the shipping schedule based on input comprising the demand forecast, the customer data, the cargo characteristics, the service request, the network capacity and the existing cargos to ship; and
generating and transmitting a signal that dispatches the cargo for transportation according to the shipping schedule,
wherein the mixed integer program and the dynamic program are two different optimization programs, one executed over the other depending on whether or not the confidence level associated with the predicted future demand for cargo services meets the threshold confidence level.
8. The computer program product of claim 7 , further comprising presenting the price and the shipping schedule via a user interface, wherein the generating is performed responsive to receiving an acceptance of the price and the shipping schedule via the user interface.
9. The computer program product of claim 7 , wherein decision variables in the mixed integer program comprises:
x n (t,l) comprising a binary value representing a pricing decision, wherein the pricing decision=1 if p n (t,l) is applied to a quote at period t, ready to ship at period t+l; and
y m (t,l) comprising a binary value representing an allocation decision, wherein the allocation decision=1 if demand Q(t,l) is planned to ship at period t+l+m;
wherein t=1, . . . , T representing time index with planning horizon=T,
l=0, . . . , L representing ready-to-ship period=t+l,
n=1, . . . , N representing index of price point, and
m=0, . . . , M representing ship time=t+l+m≤t+l+M, t+l+M representing latest time to ship.
10. The computer program product of claim 9 , wherein the mixed integer program is solved subject to constraints comprising: only one of N list prices is selected in each period t ready to ship at t+l; a shipping demand after scheduling is jointly determined by the pricing decision and the allocation decision; only one of M time slots is selected; that total shipping demands does not exceed available capacity W(t) in each period t; and the pricing decision and the allocation decision variables are binary integers, specifying a list price to select and a shipping time slot to allocate.
11. The computer program product of claim 7 , wherein the dynamic program calculates a total expected profit G t (U t ,W t ) in a recursive manner from period t to T, wherein decision variables in the dynamic program comprises p(t,l) representing continuous price decisions and y m (t,l) comprising a binary value representing an allocation decision wherein y m (t,l)=1 if quote (t,l) is planned to ship at t+l+m, wherein
t=1, . . . , T representing time index with planning horizon=T,
l=0, . . . , L representing ready-to-ship period=t+l,
m=0, . . . , M representing ship time=t+l+m≤t+l+M, t+l+M representing latest time to ship.
12. The computer program product of claim 7 , wherein the shipping schedule comprises ready to ship date and latest ship date.
13. A system of providing cargo logistics, comprising:
at least one hardware processor operable to receive a service request for transporting cargo,
the at least one hardware processor further operable to predict a future demand for cargo services with a confidence level,
responsive to determining that the confidence level meets a threshold confidence level, the at least one hardware processor further operable to execute a mixed integer program that jointly determines price and shipping schedule for transporting the cargo, based on inputs comprising the demand forecast, customer data, cargo characteristics, service request, network capacity and existing cargos to ship, the mixed integer program optimizing jointly the price and the shipping schedule,
responsive to determining that the confidence level does not meet the threshold confidence level, the at least one hardware processor further operable to execute a dynamic program that dynamically determines the price and the shipping schedule based on input comprising the demand forecast, the customer data, the cargo characteristics, the service request, the network capacity and the existing cargos to ship,
the at least one hardware processor further operable to generate and transmit a signal that dispatches the cargo for transportation according to the shipping schedule,
wherein the mixed integer program and the dynamic program are two different optimization programs, one executed over the other depending on whether or not the confidence level associated with the predicted future demand for cargo services meets the threshold confidence level.
14. The system of claim 13 , wherein the at least one hardware processor is operable to execute a user interface that presents the price and the shipping schedule, wherein the at least one hardware processor generates the signal responsive to receiving an acceptance of the price and the shipping schedule via the user interface.
15. The system of claim 13 , wherein decision variables in the mixed integer program comprises:
x n (t,l) comprising a binary value representing a pricing decision, wherein the pricing decision=1 if p n (t,l) is applied to a quote at period t, ready to ship at period t+l; and
y m (t,l) comprising a binary value representing an allocation decision, wherein the allocation decision=1 if demand Q(t,l) is planned to ship at period t+l+m;
wherein t=1, . . . , T representing time index with planning horizon=T,
l=0, . . . , L representing ready-to-ship period=t+l,
n=1, . . . , N representing index of price point, and
m=0, . . . , M−1 representing ship time=t+l+m≤t+l+M, t+l+M representing latest time to ship.
16. The system of claim 15 , wherein the mixed integer program is solved subject to constraints comprising: only one of N list prices is selected in each period t ready to ship at t+l; a shipping demand after scheduling is jointly determined by the pricing decision and the allocation decision; only one of M time slots is selected; that total shipping demands does not exceed available capacity W(t) in each period t; and the pricing decision and the allocation decision variables are binary integers, specifying a list price to select and a shipping time slot to allocate.
17. The system of claim 13 , wherein the dynamic program calculates a total expected profit G t (U t ,W t ) in a recursive manner from period t to T, wherein decision variables in the dynamic program comprises p(t,l) representing continuous price decisions and y m (t,l) comprising a binary value representing an allocation decision wherein y m (t,l)=1 if quote (t,l) is planned to ship at t+l+m, wherein
t=1, . . . , T representing time index with planning horizon=T,
l=0, . . . , L representing ready-to-ship period=t+l,
m=0, . . . , M representing ship time=t+l+m≤t+l+M, t+l+M representing latest time to ship.
18. The system of claim 13 , wherein the shipping schedule comprises ready to ship date and latest ship date.
19. The method of claim 1 , wherein the future demand for cargo services is predicted using a time series model that performs predictions with confidence values.