An automated system for motor carrier selection

This paper deals with the development of an automated procedure for selecting motor carriers to minimize transportation cost prepaid by a shipper. To test the effectiveness of the decision support system (DSS), an empirical study was conducted, in which the freight carriers actually chosen by the traffic manager at a large manufacturing company over a period of time were compared with those recommended by the computer program and the difference between the two total transportation costs was computed. It was found that, while the human decisions based on experience and intuition were generally sound and good, substantial savings in shipping expenses were achievable with the aid of a DSS such as the one described here, especially when the logistical operations become more complex and the time horizon is longer. Limitations of the present study are delineated and directions for future research are discussed.