Joint Cargo Logistics Pricing and Scheduling Optimization

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Solution Overview

Problem

Current cargo logistics management methodologies fail to consider lead time and capacity scheduling when quoting cargo transportation services, leading to suboptimal transportation and pricing.

Innovation Solution

A method and system that determine a demand forecast with a confidence level, using a mixed integer program or dynamic program to jointly optimize price and shipping schedule based on demand forecast, customer data, cargo characteristics, network capacity, and existing cargos, ensuring optimal pricing and scheduling.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If current methodologies are used for quoting cargo transportation services, then the pricing and scheduling process is simpler, but the transportation efficiency and capacity utilization deteriorate

Engineering Contradiction:

Improvetransportation efficiencyVSAvoidpricing and scheduling complexity

Core Design Contradiction:

ProductivityVSDevice complexity

Solution Approach 1:

The patent combines pricing determination and shipping schedule determination into a single integrated mixed integer program. This merging allows the system to simultaneously optimize both price and schedule based on demand forecast confidence levels, network capacity, and cargo characteristics, thereby improving transportation efficiency without requiring separate complex processes

Inventive Principle:

Principle #5Merging (Combining)

Solution Approach 2:

The system dynamically adjusts the pricing and scheduling approach based on the confidence level of demand forecasts. When confidence is high, it uses mixed integer programming for joint optimization; when confidence is low, it uses dynamic programming. This dynamic adaptation allows the system to handle uncertainty while maintaining optimization benefits

Inventive Principle:

Principle #15Dynamics

2Productivity

If lead time and capacity scheduling are not considered when quoting services, then the pricing process is faster, but the capacity utilization and service optimization deteriorate

Engineering Contradiction:

Improvecapacity utilizationVSAvoidpricing and scheduling time

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The system performs demand forecasting before finalizing pricing and scheduling decisions. By predicting future demand with confidence levels in advance, the system can prepare optimized pricing and schedules that consider lead time and capacity constraints, improving capacity utilization without excessive time loss during actual service delivery

Inventive Principle:

Principle #10Preliminary action

3Adaptability or versatility

If a single pricing method is used for all cargo services, then the pricing process is simpler, but the ability to optimize for different service requirements deteriorates

Engineering Contradiction:

Improveservice differentiation capabilityVSAvoidpricing methodology complexity

Core Design Contradiction:

Adaptability or versatilityVSDevice complexity

Solution Approach 1:

The patent applies different pricing and scheduling methodologies (mixed integer programming vs. dynamic programming) based on local conditions, specifically the confidence level of demand forecasts and cargo characteristics. This allows the system to optimize pricing and schedules tailored to each service request's specific requirements rather than applying a uniform approach

Inventive Principle:

Principle #3Local quality

Data Source

PatentUS10692039B2Cargo logistics dispatch service with integrated pricing and scheduling

Publication Date: 2020.06.23 INTERNATIONAL BUSINESS MACHINE CORPORATION

AI summary

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.