Power Forecasting and Fleet Location Optimization American Commercial Barge Line LLC Gail W. DePuy, G. Don Taylor and Amy Bush Center for Engineering Logistics & Distribution CELDi UL02-02

 Two separate problems  Problem 1 – Power Forecasting  Problem Definition  Problem Setting  Solution Approach  Problem 2 – Fleet Location Optimization  Problem Definition  Problem Setting  Solution Approach  Project Status  Conclusions & Plans Poster Overview Center for Engineering Logistics & Distribution CELDi

Determine which boat carries each barge Minimize barge handling costs Minimize barge dwell (idle) costs Minimize sub-contract charges Understand the trade-off between tows with low handling costs (common destinations) versus tows with low dwell costs (different destinations) Use a technique that can be used on a real-time basis Problem 1 – Power Forecasting Problem Description Center for Engineering Logistics & Distribution CELDi

Ohio River from Cairo, IL (confluence of Ohio & Mississippi Rivers) to Pittsburgh, PA Dozens of input/output port locations Hundreds of barges Two-week rolling planning horizon Dynamic river conditions & stochastic demand Very little help in the published literature Problem 1 – Power Forecasting Problem Setting Center for Engineering Logistics & Distribution CELDi

 Simulation Heuristic  Extremely detailed analysis  Comprehensive & easy to understand & use  Useful for comparison & validation  Real time barge scheduling capabilities  Series of local optima sought; boats can compare the cost of barge assignment to the cost of assignment to other boats in the system  Complex boat management rules including when it is better to turn the boat  Extremely detailed analysis  Basic tradeoff between handling & dwell costs  Use SIMNET II Problem 1 – Power Forecasting Solution Approach Center for Engineering Logistics & Distribution CELDi

Strategic Issue - Determine river locations to use for various activities (Dynamic Facility Layout Problem) Tow building/Tow breaking Barge Cleaning Barge Repair Determine number and type of boats needed Locate activities to minimize costs Considerations: Distances between fleet locations Boat types – operating rules and costs Barge volumes Cleaning and Repair times Problem 2 – Fleet Location Opt. Problem Description Center for Engineering Logistics & Distribution CELDi

New Orleans/Lower Mississippi River 130 current fleet/customer locations Thousands of barges 4 boat types One month planning horizon Dynamic river conditions Problem 2 – Fleet Location Opt. Problem Setting Center for Engineering Logistics & Distribution CELDi

Problem 2 – Fleet Location Opt. Solution Approach  Integer Programming Formulation  Objective:  Minimize travel, cleaning, and repair costs  Constraints:  Barge volume balance constraints at each location  Fleet capacity  Boat rules – certain boat types can only operate in certain areas of river  Determination of cleaning locations  Determination of repair locations Center for Engineering Logistics & Distribution CELDi

Problem 1 – Power Forecasting  Basic simulation model has been developed  Implementation completed  Model enhancements completed  Final report submitted Problem 2 – Fleet Location Optimization  IP model developed, verified, and validated  Data collection (by sponsor) completed  Final report submitted Project Status Center for Engineering Logistics & Distribution CELDi

 Two separate deliverables  Power Forecasting SIMNET Simulation Tool  Fleet Location Optimization Tool (IP program)  Power forecasting SIMNET simulation tool can be used to schedule barges on an hourly basis  Fleet location IP model can be used to perform ‘what-if’ analysis to consider the acquisition of new fleet locations Concluding Remarks Center for Engineering Logistics & Distribution CELDi