Title

CSX Railway Uses OR to Cash In on Optimized Equipment Distribution

Document Type

Article

Publication Date

1-2010

Publication Source

Interfaces

Abstract

Each day, CSX Railway allocates hundreds of empty railcars among hundreds of customer car orders. In 1997, it implemented the US rail industry's first real-time, fully integrated equipment-distribution optimization system, the dynamic car-planning system (DCP). DCP seamlessly integrates operations research modeling into CSX's process that assigns empty cars to customer car orders. CSX estimates that the DCP system saves the company more than $51 million annually and has saved $561 million since its implementation. DCP has also provided $1.4 billion in capital-expenditure avoidance because of more efficient car allocation. Fewer railcars yield improved return on assets and reduced congestion on the CSX rail network. Customer satisfaction has also increased because of improved empty-car delivery. Public benefits include improved highway safety; reductions in congestion, pollution, and greenhouse gases; and reduced tax-supported road maintenance, thus saving an estimated $600 million.

Inclusive pages

5-16

ISBN/ISSN

0092-2102

Comments

Permission documentation is on file.

Publisher

INFORMS

Volume

40

Issue

1

Peer Reviewed

yes