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Integrating long-haul and local transportation planning: the Service Network Design and Routing Problem

  • Juliette Medina
  • Mike Hewitt
  • Fabien LehuédéEmail author
  • Olivier Péton
Research Paper

Abstract

We introduce a new optimization problem, the Service Network Design and Routing Problem that integrates long-haul and local transportation planning decisions. Such a problem is particularly important for consolidation carriers that face customer demands for fast delivery and thus must synchronize the different levels of their transportation operations. We present two formulations of the problem: (1) a route-based formulation that allows for the modeling of a rich set of rules governing local delivery routes at the expense of increased instance size and computational solve time, and, (2) an arc-based formulation that can be solved more quickly but has less modeling power. We solve each with a Dynamic Discretization Discovery algorithm that was recently proposed and designed for solving Service Network Design problems that require the precise modeling of time. With an extensive computational study, we examine the benefits of each formulation.

Keywords

Service Network Design Vehicle Routing Problem 

Notes

Acknowledgements

This material is based upon work supported by the National Science Foundation under Grant no. CMMI-1435625.

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature and EURO - The Association of European Operational Research Societies 2018

Authors and Affiliations

  1. 1.IMT Atlantique LS2N, UMR CNRS 6004NantesFrance
  2. 2.Quinlan School of BusinessLoyola University ChicagoChicagoUSA
  3. 3.CRC ServicesRueil MalmaisonFrance

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