transport on-demand in a service supply chain experiencing seasonal demand: managing persistent backlogs

Successful transport-on-demand (TOD) requires having sufficient capacity in the right location to meet demand when it occurs. Consumer and recovery vehicle locations are variable, and the vehicle recovery service is contracted out in the service supply chain. This research aims to identify how different variables/factors influence backlogs during busy periods and service performance. A case study of a vehicle recovery company was undertaken using observation and analysis of historical data to map the process. Discrete event simulation (DES) was used to model several processes to evaluate the operational impact of changes. We find that ensuring complete and accurate information transmission over the chain supports the TOD service by enhancing the ‘allocation’ activity of the dispatch center staff; i.e., pairing vehicles to consumer requirements. Simple changes to how information is collected, shared, and used in the service supply chain can significantly reduce the percentage of jobs taking more than a given time.