Freight distribution performance indicators for service quality planning in large transportation networks

This paper studies the use of performance indicators in routing problems to estimate how transportation cost is affected by the quality of service offered. The quality of service is assumed to be directly dependent on the size of the time windows. Smaller time windows mean better service. Three performance indicators are introduced. These indicators are calculated directly from the data without the need of a solution method. The introduced indicators are based mainly on a “request compatibility”, which describes whether two visits can be scheduled consecutively in a route. Other two indicators are introduced, which get their values from a greedy constructive heuristic. After introducing the indicators, the correlation between indicators and transportation cost is examined. It is concluded that the indicators give a good first estimation on the transportation cost incurred when providing a certain quality of service. These indicators can be calculated easily in one of the first planning steps without the need of a sophisticated solution tool. The contribution of the paper is the introduction of a simple set of performance indicators that can be used to estimate the transportation cost of a routing problem with time windows.