Discussion Posts- Future Uses Of Network Modeling- Journal Entry

Discussion Post number 2

There was an article cited in the textbook regarding UPS’ optimization of its air network, that I found interesting.  The original article discussed how UPS and MIT developed and used something called VOLCANO: volume, location, and aircraft network optimizer – which saved the company an estimated $87 million in operating costs over the course of two years.  The network model for air transport included data on carrying packages from ground centers to airports, then to an air hub, package unloading and reloading, then delivery by the aircraft which also included ground transportation to other ground centers and then delivery to their final destination.  The optimal routes required lengthy manual planning prior to implementing VOLCANO. VOLCANO was used to “determine the minimum-cost set of routes, fleet assignment, and package flows that satisfy constraints on various operating issues, including limits on the number of aircraft of each fleet type; landing restrictions at airports; aircraft operating characteristics, such as range, speed, and load capacity; continuous aircraft flow requirements…; time windows for pickup and deliver; and sorting capacities and hours of operation for each hub” (Armacost et al p17).

I chose this article because I think the concept of shipping logistics is interesting, and a great example how using network modeling can improve a service that many of use all the time.  Effectively using network modeling could also make the changes and on-the-fly decision making that have been required due to the ongoing pandemic – as it relates to shipping and supply issues – a less lengthy process.

Armacost, Andrew P., et al. “UPS Optimizes Its Air Network.” Interfaces, vol. 34, no. 1, INFORMS, 2004, pp. 15–25, http://www.jstor.org/stable/25062865.