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Scheduled service network design with quality targets and stochastic travel times

Author

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  • Lanza, Giacomo
  • Crainic, Teodor Gabriel
  • Rei, Walter
  • Ricciardi, Nicoletta

Abstract

We address the stochastic scheduled service network design problem with quality targets and uncertainty on travel times. This important problem, raising in the tactical planning process of consolidation-based freight carriers, has been little studied up to now. We define the problem considering quality targets for on-time operation of services and delivery of demand loads to destinations. We introduce a two-stage mixed-integer stochastic model defined over a space-time network, with quality targets modeled through penalties. We also propose an effective progressive-hedging-based meta-heuristic, based on a partial-decomposition concept aiming to address the challenges raised by the presence of flow-distribution decisions in the first-stage problem and by the flow-related degeneracy particular to network design. The results of an extensive numerical experimentation emphasize the worthiness of the formulation, as well as the very good performance of the proposed meta-heuristic when compared to a well-known commercial solver.

Suggested Citation

  • Lanza, Giacomo & Crainic, Teodor Gabriel & Rei, Walter & Ricciardi, Nicoletta, 2021. "Scheduled service network design with quality targets and stochastic travel times," European Journal of Operational Research, Elsevier, vol. 288(1), pages 30-46.
    • Handle: RePEc:eee:ejores:v:288:y:2021:i:1:p:30-46
    DOI: 10.1016/j.ejor.2020.05.031
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