multi-commodity flow joe monahan josh onuska

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Multi-Commodity Flow Joe Monahan Josh Onuska

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Multi-Commodity Flow Joe Monahan Josh Onuska. Back Story. N.S. - Largest rail shipper of automobiles Scope Exclusive deal with Ford (1.9 million sold in 2010) Facilities operating 24 hours / 7 days East Coast distribution Risks Terrorism or war Labor union strikes Severe weather - PowerPoint PPT Presentation

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Page 1: Multi-Commodity Flow  Joe Monahan Josh Onuska

Multi-Commodity Flow Joe MonahanJosh Onuska

Page 2: Multi-Commodity Flow  Joe Monahan Josh Onuska

Back Story

• N.S. - Largest rail shipper of automobiles• Scope– Exclusive deal with Ford (1.9 million sold in 2010)– Facilities operating 24 hours / 7 days – East Coast distribution

• Risks– Terrorism or war– Labor union strikes– Severe weather– Derailing / rail failure

Page 3: Multi-Commodity Flow  Joe Monahan Josh Onuska

Why Multi-Commodity?

Page 4: Multi-Commodity Flow  Joe Monahan Josh Onuska

Nodes and Arcs

• Nodes– 5 assembly plants– 4 mixing centers– 25 distribution facilities

• Arcs– 22,000 miles of rail– 30,000 Ford vehicles shipped weekly– Capacity is more than sufficient to handle demand

Page 5: Multi-Commodity Flow  Joe Monahan Josh Onuska

N.S. Rail System

Page 6: Multi-Commodity Flow  Joe Monahan Josh Onuska

Automotive Shipping Facilities

Page 7: Multi-Commodity Flow  Joe Monahan Josh Onuska

Assembly Plants & Mixing Centers

Page 8: Multi-Commodity Flow  Joe Monahan Josh Onuska

Assembly PlantsLocation Supply Model

Cleveland 5,000 Econoline Van

Chicago 5,000 Taurus, Explorer

Detroit 10,000 Mustang, F-150, Focus

Kansas City 5,000 F-150, Escape, Contour

Louisville 5,000 SuperDuty,Expedition,Navigator

Page 9: Multi-Commodity Flow  Joe Monahan Josh Onuska

Containerization

Page 10: Multi-Commodity Flow  Joe Monahan Josh Onuska

Mixing Centers

Location Capacity RegionChicago 5938

NE/NWLouisville 3510

SE/EToledo 2800

NEKansas City 2538

NW/MW

Page 11: Multi-Commodity Flow  Joe Monahan Josh Onuska

Chicago Mixing Center

Page 12: Multi-Commodity Flow  Joe Monahan Josh Onuska

Node Overlay

Page 13: Multi-Commodity Flow  Joe Monahan Josh Onuska

Node Overlay

Page 14: Multi-Commodity Flow  Joe Monahan Josh Onuska

Model• Multi-commodity: Sorted (5) / Mixed• Supply/Demand Driven

– Supply = 30,000– Demand = 30,000– 60,000 units in motion– Accounts for 75% of Ford’s monthly U.S. sales

• Network Risks– Arcs unusable– Weather– Accident– Unions– Bridges

Page 15: Multi-Commodity Flow  Joe Monahan Josh Onuska

Cleveland(Avon Lake)

Chicago

Detroit (Dearborn/Wayne)

Louisville

Kansas City

Toledo

Chicago

Louisville

Kansas City

Mixed SourceMixedSink

Assembly Plants

Mixing Stations

Assembly Sinks

-30,00030,000

-5000

-5000

-5000

-5000

-10000

D

C

L

K

A5000

5000

5000

5000

10000

Page 16: Multi-Commodity Flow  Joe Monahan Josh Onuska

Network Characteristics• Network Goal– Meeting demand at the minimum cost– DNM: Current vs Future Profit loss

• Measure of effectiveness – Average cost to deliver vehicle to distribution

facility– MOE = Total Cost / # of cars shipped– Total Cost = (.25)(Rail Miles) + (DNM)($2700)

Page 17: Multi-Commodity Flow  Joe Monahan Josh Onuska

Assumptions

• 30,000 cars moved per week (From Mid-West Plants)

– 20,000 to East Coast / 10,000 to West Coast• $0.25 per rail mile for each car moved • No cost incurred for movement between co-

located facilities• DNM results in lost sales

Page 18: Multi-Commodity Flow  Joe Monahan Josh Onuska

Assembly Plants to Mixing Facilities

Mixing Facility

Assembly Plant

Page 19: Multi-Commodity Flow  Joe Monahan Josh Onuska

Mixing Facilities to Distribution Sites

Page 20: Multi-Commodity Flow  Joe Monahan Josh Onuska

Initial Results

• Base line – zero attacks:– Total Mileage: 25,511,500 Rail miles– Total Cost: $6,377,875.00– Cost per vehicle: $212.00

Page 21: Multi-Commodity Flow  Joe Monahan Josh Onuska

Results w/ Interdiction

• 1 Interdiction– 23,219,000 Miles; $11,204,750; $386.37/car

• 5 Interdictions– 14,460,000 Miles; $49,515,000; $2,303.02/car

• 10 Interdictions– 8,010,000 Miles; $88,402,500; $6,314.46/car

• 17 Interdictions– 5,010,000 Miles; $139,600,500; $31,872.60/car

Page 22: Multi-Commodity Flow  Joe Monahan Josh Onuska

Impacts of Interdiction

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200.00

5,000,000.00

10,000,000.00

15,000,000.00

20,000,000.00

25,000,000.00

30,000,000.00

Rail Miles

Interdictions

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

Tot DNM

Page 23: Multi-Commodity Flow  Joe Monahan Josh Onuska

Resiliency Curve

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200.00

10,000.00

20,000.00

30,000.00

40,000.00

50,000.00

60,000.00

Demand Not Met & Cost

TotalMixedSortedCost/Car

Interdictions

Initial Attack Strategy

Detroit Taken Out

Attack Strategy switches

Cost over profit margin

Attack Saturation

Page 24: Multi-Commodity Flow  Joe Monahan Josh Onuska

Charts: Cost of Interdiction

• Map of varying paths after each interdiction• And/or histograms of cost at each interdiction

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

Cost/Vehicle

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

Strict Cost/Vehicle

Page 25: Multi-Commodity Flow  Joe Monahan Josh Onuska

Resiliency

• How do we make the system more robust and resistant to catastrophic collapse?– Add arcs to isolated nodes – Back up plan (trucks)

• Can we move nodes around (mixing stations or distribution points) to get a more efficient solution? – Moving or even eliminating mixing stations

improves performance.

Page 26: Multi-Commodity Flow  Joe Monahan Josh Onuska

Optimal Attack Histogram

CHI-TOL

JAX-PAL

IND-CIN

STL-D

ES

FTW-CIN

FTW-IN

D

BIRM-MER

CHI-FTW

CHI-STL

KC-FTW

TOL-F

TWCHI-D

ES

LOU-ST

L

KC-DESKC-ST

L

LOU-LE

X

CIN-COL

LEX-KNOX

CLE-FTW

DET-FTW

DET-CHI

CLE-BUF

CLE-PIT

DET-TO

L

TOL-C

OL0

2

4

6

8

10

12

14

Page 27: Multi-Commodity Flow  Joe Monahan Josh Onuska

Frequency of Attack Locations

Page 28: Multi-Commodity Flow  Joe Monahan Josh Onuska

Additional Analysis

• Option to eliminate one of the four mixing facilities:– Bypassed Chicago– $194,375 in weekly savings

Page 29: Multi-Commodity Flow  Joe Monahan Josh Onuska

Analysis Limitations

• Lots of assumptions• Changes in Consumer Demand by geographic

location

Page 30: Multi-Commodity Flow  Joe Monahan Josh Onuska

Conclusion

• What did we learn from the model?– Hub and spoke affect

• How does the model react to interdiction?– Greatest impact from interdiction seen in DNM

• Critical vulnerabilities?– Isolated nodes, close proximity of Assm. Plants

• How can we improve the system to lower cost?– Eliminate Mixing Facility

• Diminishing returns after 17 attacks

Page 31: Multi-Commodity Flow  Joe Monahan Josh Onuska

Questions