Integrating long-haul and local transportation planning: the Service Network Design and Routing Problem
- 213 Downloads
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.
KeywordsService Network Design Vehicle Routing Problem
This material is based upon work supported by the National Science Foundation under Grant no. CMMI-1435625.
- Boland N, Hewitt M, Marshall L, Savelsbergh M (2017) The continuous-time service network design problem. Oper Res. https://doi.org/10.1287/opre.2017.1624
- Dellaert N, Saridarq FD, Van Woensel T, Crainic TG (2016) Branch and price based algorithms for the two-echelon vehicle routing problem with time windows. Les cahiers du CIRRELT (CIRRELT-2016-45)Google Scholar
- Desaulniers G, Desrosiers J, Solomon MM (2006) Column generation. Springer Science and Business Media, BerlinGoogle Scholar
- Grangier P, Gendreau M, Lehuédé F, Rousseau LM (2016b) A matheuristic based on large neighborhood search for the vehicle routing problem with cross-docking. Les cahiers du CIRRELT CIRRELT-2016-09Google Scholar
- Mitrović-Minić S, Laporte G (2006) The pickup and delivery problem with time windows and transshipment. INFOR 44(3):217–228Google Scholar
- Petersen HL, Ropke S (2011) The pickup and delivery problem with cross-docking opportunity. In: Proceedings of the second international conference on computational logistics, Springer, Berlin, Heidelberg, ICCL’11, pp 101–113Google Scholar