Transportation Backhaul Matching Using Binary Programming Model: A Case Study on Third-Party Logistics Network in Thailand

Abstract—Backhauling has become an attractive cost-saving approach in logistics. To explore such opportunities, we propose a backhaul matching optimization model based on Binary Integer Programming (BIP). A set of operational and logical constraints was also developed. While flexible enough to apply to general logistics networks, we validate our model in a large 3rd party logistics network in Thailand. It is shown that our scheme always produces optimal backhaul matching plan, satisfies the defined constraints, and in turn outperforms the existing manual operation that is also time-consuming and subject to human error. The proposed model provides a promising scheme to improve the network’s backhaul matching operation and yield a competitive advantage.

Index Terms—Backhaul matching, binary integer programming, logistics, supply chain network.

Machigar Ongtang is with Dhurakij Pundit University, Bangkok 10210, Thailand (e-mail: machigar.ong@dpu.ac.th).
Satama Sirivunnabood is with King Mongkut's Institute of Technology Ladkrabang, Bangkok 10520, Thailand (e-mail: satamas@gmail.com).

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Cite: Machigar Ongtang and Satama Sirivunnabood, "Transportation Backhaul Matching Using Binary Programming Model: A Case Study on Third-Party Logistics Network in Thailand," Lecture Notes on Software Engineering vol. 2, no. 3, pp. 251-255, 2014.