Optimal boat–barge convoy formation and freight assignment in inland waterways freight transportation

This paper addresses the problem of boat–barge convoy dispatch that arises in the simultaneous assignment of freight to and the formation of boat–barge convoys in inland waterways transportation. Normally, the dispatch type of problem under consideration in this paper is faced daily in inland waterways transportation networks, for which there does not exist as yet a general mathematical programming model. In this paper, the problem is formulated within a binary linear programming modelling framework, which is applicable to inland waterways networks of any configuration. The mathematical model is applied to a real-world case, which is encountered in inland waterways transportation in the Amazon region in Brazil, so as to illustrate the use of the model in practice. The global optimal solution that is obtained results in substantial cost reduction, in comparison with the present dispatch policy, which is based on past experience. Consequently, the mathematical model has been adopted by the company as a basis for decision support in boat–barge convoy formation and dispatch within its enterprise planning system.