Analyzing the Benefits of Optimal Dispatching in Shipment Consolidation
Benhür Satır
Industrial Engineering Department, Çankaya University

Abstract
In practice, most logistics providers dispatch consolidated loads at pre-planned periods, i.e. using a time policy. In this study, we investigate the relative benefit and conditions leading to it when the optimal policy is used instead. The benefit is measured in terms of expected discounted total cost. We model the problem as a Continuous Time Markov Decision Process, and assume compound Poisson arrivals of two customer types, viz. expedited and regular. We prove the existence of quantity-based optimal threshold policies under particular conditions, and develop an efficient solution approach for large problem instances. We provide numerical studies using two industrial cases.

Short Bio
Dr. Satır has received his PhD in Industrial Engineering in 2010 from METU. Upon graduation he worked as production planning manager of a mid-sized poultry integration for a year and then joined the faculty at Çankaya University. His prior training includes an MS in Industrial Engineering, MS in Economics and a BS in Industrial Engineering, all from METU. Dr. Satır has participated in several EU/TÜBİTAK/Ministry of Industry funded projects, owns four patents and founded two spin-off companies. He has been at University of Waterloo, Ontario, Canada, for a year for post-doctoral study and this presentation is about that research. His research interest includes logistics systems design and optimization, supply chain optimization and management models, mathematical modeling.

Venue
Friday, November 2, 2018 at 4.00 pm in IE03