# Cost-Optimal Foundation Model Deployment Portfolio for Transportation Management

arXiv: https://arxiv.org/abs/2607.13239 · HTML: https://mlsanity.com/paper/2607.13239/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 20 of its 43 references that are in the map.
- First posted on arXiv 14 Jul 2026.

## Builds on (most cited first, 20 of 20)

- [The Llama 3 Herd of Models](https://mlsanity.com/paper/2407.21783/) (2024)
- [Judging LLM-as-a-Judge with MT-Bench and Chatbot Arena](https://mlsanity.com/paper/2306.05685/) (2023)
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- [Qwen2.5-VL Technical Report](https://mlsanity.com/paper/2502.13923/) (2025)
- [InternVL: Scaling up Vision Foundation Models and Aligning for Generic Visual-Linguistic Tasks](https://mlsanity.com/paper/2312.14238/) (2023)
- [A Survey on Hallucination in Large Language Models: Principles, Taxonomy, Challenges, and Open Questions](https://mlsanity.com/paper/2311.05232/) (2023)
- [SGLang: Efficient Execution of Structured Language Model Programs](https://mlsanity.com/paper/2312.07104/) (2023)
- [FrugalGPT: How to Use Large Language Models While Reducing Cost and Improving Performance](https://mlsanity.com/paper/2305.05176/) (2023)
- [RouteLLM: Learning to Route LLMs with Preference Data](https://mlsanity.com/paper/2406.18665/) (2024)
- [Hybrid LLM: Cost-Efficient and Quality-Aware Query Routing](https://mlsanity.com/paper/2404.14618/) (2024)
- [Fly-Swat or Cannon? Cost-Effective Language Model Choice via Meta-Modeling](https://mlsanity.com/paper/2308.06077/) (2023)
- [Harnessing Large Language Models for Training-free Video Anomaly Detection](https://mlsanity.com/paper/2404.01014/) (2024)
- [A Unified Approach to Routing and Cascading for LLMs](https://mlsanity.com/paper/2410.10347/) (2024)
- [LLMLight: Large Language Models as Traffic Signal Control Agents](https://mlsanity.com/paper/2312.16044/) (2023)
- [Open-TI: Open Traffic Intelligence with Augmented Language Model](https://mlsanity.com/paper/2401.00211/) (2023)
- [M'elange: Cost Efficient Large Language Model Serving by Exploiting GPU Heterogeneity](https://mlsanity.com/paper/2404.14527/) (2024)
- [A Cost-Benefit Analysis of On-Premise Large Language Model Deployment: Breaking Even with Commercial LLM Services](https://mlsanity.com/paper/2509.18101/) (2025)
- [Large Language Models for Mobility Analysis in Transportation Systems: A Survey on Forecasting Tasks](https://mlsanity.com/paper/2405.02357/) (2024)
- [ThriftLLM: On Cost-Effective Selection of Large Language Models for Classification Queries](https://mlsanity.com/paper/2501.04901/) (2025)
- [A Middle Path for On-Premises LLM Deployment: Preserving Privacy Without Sacrificing Model Confidentiality](https://mlsanity.com/paper/2410.11182/) (2024)

## Abstract (arXiv)

Foundation models, including large language models (LLMs) and vision-language models (VLMs), are increasingly used for transportation management center (TMC) tasks such as anomaly detection, incident reporting, and traveler information. Deploying multiple such models across TMC functions raises a portfolio question: which model should serve each function, in which deployment mode, and under what shared hardware budget? We formulate this as the Foundation Model Deployment Portfolio (FMDP) problem, a mixed-integer program minimizing total cost of ownership (TCO) subject to per-function quality, latency, and safety constraints over shared GPU capacity. We prove the problem NP-hard by reduction from the 0-1 knapsack problem and propose a polynomial-time greedy heuristic. In an illustrative case study with five TMC functions and 19 candidate (model, mode) pairs, FMDP identifies a mixed portfolio costing 34/mo (97% below the cheapest feasible all-closed-API baseline) by routing four functions to open-source APIs and the one function whose quality floor no open-source model meets to a closed API. Break-even analysis shows that on-premise GPU investment becomes reasonable only above approximately 309 vision queries/hour or if API prices double.