Hcsap Model

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About 200 billion items are delivered by the United States Postal Service every year and timely transport use that provide cost-efficient ways to save is the main issue for USPS to maintain properly to achieve the desired financial goals. The US Postal Service has established creative plans to provide the rural and suburban areas with the significant retail facilities and in 2012, a special program was created to stimulate the preservation of its rural post offices by the reducing operating hours and at the same time, 13,000 post offices in certain geographical areas were reviewed and closed, thus, the exact number of the offices closed is unclear (Kosar, 2012). In recent years, the delivery market in the U.S. has been largely dominated by …show more content…
Subsequently, in cooperation with IBM, the Highway Corridor Analytic Program (HCAP) was developed in order to optimize the transportation system and decrease the unnecessary money spends (Meyer, 2009). The HCAP model solves the problems related to the vehicle's routine, especially those connected with such issues as pickups and deliveries, moreover, this model utilizes the mixed programming to create the proper mail delivery's engine. HCAP is an analytic mechanism which was initially created to assist the USPS employees in identifying the budget-saving opportunities in the framework of the company's logistics structure. The program's incorporation was to a great extent caused by the USPS determination to resolve the Vehicle Routing Problem with Pickups and Deliveries (Pajunas, Matto, Trick & Zuluaga, …show more content…
The implementation of the HCAP has resulted with positive consequences. There are five key elements of the HCAP implementation in the USPS. Namely, these include proper timing evaluation, optimality, the opportunity of being utilized in other USPS operating' aspects, flexibility, and availability of the tangible benefits in a short time period after the program's launch (Pajunas, Matto, Trick & Zuluaga, 2007). During the first year using the HCAP model, USPS’s savings could notably be seen since establishment of the model. The company saved nearly $1.3 million on Midwest deliveries as well as around $4 million on the deliveries made within the West Coast region (Samson,