In traditional Operations Research(OR),operations are often rated and optimized upon a small set of parameters only–
sometimes only one single parameter.This results however in non-optimal system behaviour. Consider the example of
empty-kilometer minimization.This optimization often results in trucks standing still,waiting for a next order (preferably
with a starting point equal to the place of waiting).Trucks do not anticipate on the next order (in a more fruitful region).
Often waiting time does cost money aswell –the driver needstobe paidandthe truckcouldhave been utilizedfor other
purposes.Reviewingsingle optimization parameterscan hardlybe seen separate from other indicators,asthe following
indicates: Let usconsider an LSPthat hasa truckdrivingaroundwithonlyone small package –so,it usesonly5% ofits
carriage capacity–utilizinga veryinefficient route,withlotsofdetours.It ishowever not drivingaroundempty–sofrom
an empty-milesperspective thistruckoperatesveryeffective.Althoughwe dorealize that the truckcouldhave carriedmore
cargo,andthe route it tookcouldhave been more efficient.However,we donot know yet whether the customer isactually
payingfor thistrip –because ifso,noLSPwouldmindtohave a truckdrivingaroundvia an inefficient route,withonly
little cargoaslongasthe customer ispayinga goodprice.
In traditional Operations Research(OR),operations are often rated and optimized upon a small set of parameters only–sometimes only one single parameter.This results however in non-optimal system behaviour. Consider the example ofempty-kilometer minimization.This optimization often results in trucks standing still,waiting for a next order (preferablywith a starting point equal to the place of waiting).Trucks do not anticipate on the next order (in a more fruitful region).Often waiting time does cost money aswell –the driver needstobe paidandthe truckcouldhave been utilizedfor otherpurposes.Reviewingsingle optimization parameterscan hardlybe seen separate from other indicators,asthe followingindicates: Let usconsider an LSPthat hasa truckdrivingaroundwithonlyone small package –so,it usesonly5% ofitscarriage capacity–utilizinga veryinefficient route,withlotsofdetours.It ishowever not drivingaroundempty–sofroman empty-milesperspective thistruckoperatesveryeffective.Althoughwe dorealize that the truckcouldhave carriedmorecargo,andthe route it tookcouldhave been more efficient.However,we donot know yet whether the customer isactuallypayingfor thistrip –because ifso,noLSPwouldmindtohave a truckdrivingaroundvia an inefficient route,withonlylittle cargoaslongasthe customer ispayinga goodprice.
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