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Simulation Analysis of Simulation Analysis of Truck Driver Scheduling Truck Driver Scheduling Rules Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130 Lowell, Arkansas 72745, U.S.A. Presented By: Craig Rachel, Midwestern State University

Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

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Page 1: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Simulation Analysis of Simulation Analysis of Truck Driver Scheduling Truck Driver Scheduling

RulesRules

Eric C. ErvinRussell C. Harris

J.B. Hunt Transport, Inc.615 J.B. Hunt Corporate Drive

P.O. Box 130Lowell, Arkansas 72745, U.S.A.

Presented By: Craig Rachel, Midwestern State University

Page 2: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Overview:Overview:

IntroductionBackgroundObjectiveApproachResults & DiscussionConclusion

Page 3: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

IntroductionIntroduction

Redefined Employee Workday Modified Planning Process Productivity Changes that will influence the profitability of

customer contracts

Impacts of Implementation of Scheduling Changes

Change in regulations on hours of service (HOS) for truck drivers

• 120,000 unique freight lanes• 5,000 tractors• 10,000 trailers

Page 4: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

IntroductionIntroduction

Order-to-Delivery ProcessTruck Driver’s daily routine

Modeling of Two Important Aspects

• People• Equipment• Material• Information

To show interaction and flow of

Page 5: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

BackgroundBackground

First change in 60 years

Page 6: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

ObjectiveObjective

Determine the impact of the new 2004 HOS rules as they apply to driver utilization, customer on-time service and the nature of the company’s freight network

Develop a strategy to mitigate any negative impact on utilization and efficiency

Page 7: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

ApproachApproach

Demand GenerationCapacity ManagementLoad and Tractor AssignmentDriver Log ManagementTransportation ExecutionCustomer Freight Pick-up and Delivery

Six (6) Major Processes Modeled in the Simulation

Page 8: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Demand GenerationDemand Generation

Generated over 12 month periodRepresented data extracted from 1 full year of

actual historyReflected seasonalityDemand that was not accommodated due to lack

of capacity waited up to 24 hours

Page 9: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Capacity ManagementCapacity Management

Capacity = DriverOn dispatch (in service), not on dispatch

(available), at home (until completion of off-duty time)

Derived from data collected at company warehouses

Page 10: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Load and Tractor AssignmentLoad and Tractor Assignment

Maximize efficiencyMinimize empty milesAvoid customer service failuresAvoid assigning loads to drivers who were due

home soonPreference giving to drivers based on how close

to the load they wereDriver needed sufficient hours

Page 11: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Transportation ExecutionTransportation Execution

Company load history characteristics were usedAssumes average velocity rises as trip continuesConsider congestion urban areas and assume

longer trips utilize expressways

Page 12: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Driver LogsDriver Logs

Off-duty, general off-dutyOff-duty, driver in sleeper berth or at

homeOn-duty, drivingOn-duty, not driving. Loading/unloading

Page 13: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Runtime EnvironmentRuntime Environment

2 GHZ CPU, 1 GB RAMSingle Replication took 4 hours on

averageExperiments took 4 replications or 16

hours to completeSimulated the system for 1 year

Page 14: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Results and DiscussionResults and Discussion

10 hours vs. 11 hours driving per shift15 hours vs. 14 hours on duty per shift8 hours vs. 10 hours break time between

shiftsThe non-consecutive vs. consecutive

nature of on duty time

Analysis of results focused on key differences implemented in 2004:

Page 15: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Results and DiscussionResults and Discussion

Only 3 hours in 14 hour work window to cover inspections, fueling, and loading & unloading

Any delays, erodes the 11 hours available to drive

Biggest Finding: Impact of Consecutive Nature of the way on-duty time is logged

Page 16: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Results and DiscussionResults and Discussion

Speed limit of 62 MPHSpeed limit of 65 MPHSpeed limit of 68 MPHSpeed limit of 70 MPH

Baseline 2003 (old scenario) vs. 2004 HOS changes

Marginal improvement at 70 MPH over 62 MPH

Conclusion:

Page 17: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

ConclusionConclusion

Expect miles to drop 2-3%Amount of time to deliver load will go upMPH increase only marginally improves

productivity

Communicate to Drivers:

Page 18: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

ConclusionConclusion

Service level impact – decrease 2.4%Evaluate special fees for customers

Communicate to Customers:

Page 19: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

ConclusionConclusion

Develop a pricing strategy that factors in loss of miles, etcPrepare for potential capacity decreaseOptimize the 3 hours that drivers have for inspections, etcConsider the 14 hour work window when determining how

to dispatch drivers

The Business:

Page 20: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

Evaluating Real World ResultsEvaluating Real World Results

Industry given grace period in 2004Utilization is up in 2004, not comparing the

same numbersCompany policy changed, how did this

effect the numbers?

1st 5 Months of 2004

Page 21: Simulation Analysis of Truck Driver Scheduling Rules Eric C. Ervin Russell C. Harris J.B. Hunt Transport, Inc. 615 J.B. Hunt Corporate Drive P.O. Box 130

ReferencesReferences

Jain, S., R.W. Workman, L.M. Collins, E.C. Ervin and A.P. Lathrop, 2001. Development of a High Level Supply Chain Simulation Model

Law, Averill M. and W. David Kelton, 1991. Simulation Modeling & Analysis, 2nd Edition, McGraw-Hill, Inc. USA.

Taylor, G. Don, T.S. Meinert, R.C. Killian and G.L. Whicker, 1999. Development and Analysis of Alternative Dispatching Methods in Truckload Trucking.