IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v299y2022i1p154-167.html
   My bibliography  Save this article

A two-stage robust model for express service network design with surging demand

Author

Listed:
  • Zhang, X.
  • Liu, X.

Abstract

In the periods following sales on online shopping carnivals, demand for express transportation is expected to precipitously surge within a short time, potentially causing express system overload and delivery delays. In this study, we address a service network design problem of a hub-and-spoke structured express transportation network during periods of surging demands. We consider a new strategy of upgrading existing spokes into temporary hubs to expand the network capacity with low costs. We propose a two-stage bi-objective robust model based on a time-space network to integrate the spoke-upgrading selection, service-scheduling, and vehicle-routing for designing an express service network that is both efficient and economic. To solve the model, we develop an enhanced column-and-constraint generation algorithm. Finally, a case study of a real express logistics company in China is demonstrated to validate the effectiveness of the proposed strategy and to offer decision support in real problems.

Suggested Citation

  • Zhang, X. & Liu, X., 2022. "A two-stage robust model for express service network design with surging demand," European Journal of Operational Research, Elsevier, vol. 299(1), pages 154-167.
    • Handle: RePEc:eee:ejores:v:299:y:2022:i:1:p:154-167
    DOI: 10.1016/j.ejor.2021.06.031
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221721005476
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2021.06.031?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Andersen, Jardar & Crainic, Teodor Gabriel & Christiansen, Marielle, 2009. "Service network design with management and coordination of multiple fleets," European Journal of Operational Research, Elsevier, vol. 193(2), pages 377-389, March.
    2. Mervat Chouman & Teodor Gabriel Crainic, 2015. "Cutting-Plane Matheuristic for Service Network Design with Design-Balanced Requirements," Transportation Science, INFORMS, vol. 49(1), pages 99-113, February.
    3. Dimitris Bertsimas & Melvyn Sim, 2004. "The Price of Robustness," Operations Research, INFORMS, vol. 52(1), pages 35-53, February.
    4. Wang, Zujian & Qi, Mingyao & Cheng, Chun & Zhang, Canrong, 2019. "A hybrid algorithm for large-scale service network design considering a heterogeneous fleet," European Journal of Operational Research, Elsevier, vol. 276(2), pages 483-494.
    5. Zhang, M. & Janic, M. & Tavasszy, L.A., 2015. "A freight transport optimization model for integrated network, service, and policy design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 61-76.
    6. Endong Zhu & Teodor Gabriel Crainic & Michel Gendreau, 2014. "Scheduled Service Network Design for Freight Rail Transportation," Operations Research, INFORMS, vol. 62(2), pages 383-400, April.
    7. Natashia Boland & Mike Hewitt & Luke Marshall & Martin Savelsbergh, 2017. "The Continuous-Time Service Network Design Problem," Operations Research, INFORMS, vol. 65(5), pages 1303-1321, October.
    8. An, Kun & Lo, Hong K., 2014. "Ferry service network design with stochastic demand under user equilibrium flows," Transportation Research Part B: Methodological, Elsevier, vol. 66(C), pages 70-89.
    9. Michael Berliner Pedersen & Teodor Gabriel Crainic & Oli B. G. Madsen, 2009. "Models and Tabu Search Metaheuristics for Service Network Design with Asset-Balance Requirements," Transportation Science, INFORMS, vol. 43(2), pages 158-177, May.
    10. Jardar Andersen & Marielle Christiansen & Teodor Gabriel Crainic & Roar Grønhaug, 2011. "Branch and Price for Service Network Design with Asset Management Constraints," Transportation Science, INFORMS, vol. 45(1), pages 33-49, February.
    11. Lo, Hong K. & An, Kun & Lin, Wei-hua, 2013. "Ferry service network design under demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 59(C), pages 48-70.
    12. Li, Xiangyong & Ding, Yi & Pan, Kai & Jiang, Dapei & Aneja, Y.P., 2020. "Single-path service network design problem with resource constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    13. Neyshabouri, Saba & Berg, Bjorn P., 2017. "Two-stage robust optimization approach to elective surgery and downstream capacity planning," European Journal of Operational Research, Elsevier, vol. 260(1), pages 21-40.
    14. Ruiz, C. & Conejo, A.J., 2015. "Robust transmission expansion planning," European Journal of Operational Research, Elsevier, vol. 242(2), pages 390-401.
    15. Teodor Gabriel Crainic & Mike Hewitt & Michel Toulouse & Duc Minh Vu, 2016. "Service Network Design with Resource Constraints," Transportation Science, INFORMS, vol. 50(4), pages 1380-1393, November.
    16. J Andersen & M Christiansen, 2009. "Designing new European rail freight services," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(3), pages 348-360, March.
    17. T. L. Magnanti & R. T. Wong, 1981. "Accelerating Benders Decomposition: Algorithmic Enhancement and Model Selection Criteria," Operations Research, INFORMS, vol. 29(3), pages 464-484, June.
    18. Arnt-Gunnar Lium & Teodor Gabriel Crainic & Stein W. Wallace, 2009. "A Study of Demand Stochasticity in Service Network Design," Transportation Science, INFORMS, vol. 43(2), pages 144-157, May.
    19. An, Yu & Zeng, Bo & Zhang, Yu & Zhao, Long, 2014. "Reliable p-median facility location problem: two-stage robust models and algorithms," Transportation Research Part B: Methodological, Elsevier, vol. 64(C), pages 54-72.
    20. Ng, ManWo & Lo, Hong K., 2016. "Robust models for transportation service network design," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 378-386.
    21. Bai, Ruibin & Wallace, Stein W. & Li, Jingpeng & Chong, Alain Yee-Loong, 2014. "Stochastic service network design with rerouting," Transportation Research Part B: Methodological, Elsevier, vol. 60(C), pages 50-65.
    22. Crainic, Teodor Gabriel, 2000. "Service network design in freight transportation," European Journal of Operational Research, Elsevier, vol. 122(2), pages 272-288, April.
    23. Tamiz, Mehrdad & Jones, Dylan & Romero, Carlos, 1998. "Goal programming for decision making: An overview of the current state-of-the-art," European Journal of Operational Research, Elsevier, vol. 111(3), pages 569-581, December.
    24. Scherr, Yannick Oskar & Neumann Saavedra, Bruno Albert & Hewitt, Mike & Mattfeld, Dirk Christian, 2019. "Service network design with mixed autonomous fleets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 40-55.
    25. van Riessen, B. & Negenborn, R.R. & Dekker, R. & Lodewijks, G., 2013. "Service network design for an intermodal container network with flexible due dates/times and the possibility of using subcontracted transport," Econometric Institute Research Papers EI2013-17, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Li, Siqiao & Zhu, Xiaoning & Shang, Pan & Li, Tianqi & Liu, Wenqian, 2023. "Optimizing a shared freight and passenger high-speed railway system: A multi-commodity flow formulation with Benders decomposition solution approach," Transportation Research Part B: Methodological, Elsevier, vol. 172(C), pages 1-31.
    2. Alikhani, Reza & Eskandarpour, Majid & Jahani, Hamed, 2023. "Collaborative distribution network design with surging demand and facility disruptions," International Journal of Production Economics, Elsevier, vol. 262(C).
    3. Huailian Lin & Shuqiao Wu & Si Zhang & Wenting Liu, 2023. "Design of Reverse Network for Recyclable Packaging Boxes under Uncertainties," Sustainability, MDPI, vol. 15(15), pages 1-17, July.
    4. Abbas Khademi & Ahmadreza Marandi & Majid Soleimani-damaneh, 2024. "A new dual-based cutting plane algorithm for nonlinear adjustable robust optimization," Journal of Global Optimization, Springer, vol. 89(3), pages 559-595, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Zujian & Qi, Mingyao, 2019. "Service network design considering multiple types of services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 1-14.
    2. Liu, Chuanju & Zhang, Junlong & Lin, Shaochong & Shen, Zuo-Jun Max, 2023. "Service network design with consistent multiple trips," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    3. Liu, Chuanju & Lin, Shaochong & Shen, Zuo-Jun Max & Zhang, Junlong, 2023. "Stochastic service network design: The value of fixed routes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 174(C).
    4. Greening, Lacy M. & Dahan, Mathieu & Erera, Alan L., 2023. "Lead-Time-Constrained Middle-Mile Consolidation Network Design with Fixed Origins and Destinations," Transportation Research Part B: Methodological, Elsevier, vol. 174(C).
    5. Xudong Diao & Ai Gao & Xin Jin & Hui Chen, 2022. "A Layer-Based Relaxation Approach for Service Network Design," Sustainability, MDPI, vol. 14(20), pages 1-13, October.
    6. Li, Xiangyong & Ding, Yi & Pan, Kai & Jiang, Dapei & Aneja, Y.P., 2020. "Single-path service network design problem with resource constraints," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 140(C).
    7. Belieres, Simon & Hewitt, Mike, 2024. "Hedging against uncertainty in transportation network design through flexible scheduling," Omega, Elsevier, vol. 126(C).
    8. Naoto Katayama, 2020. "MIP neighborhood search heuristics for a service network design problem with design-balanced requirements," Journal of Heuristics, Springer, vol. 26(4), pages 475-502, August.
    9. Xin Wang & Teodor Gabriel Crainic & Stein W. Wallace, 2019. "Stochastic Network Design for Planning Scheduled Transportation Services: The Value of Deterministic Solutions," INFORMS Journal on Computing, INFORMS, vol. 31(1), pages 153-170, February.
    10. Hewitt, Mike & Lehuédé, Fabien, 2023. "New formulations for the Scheduled Service Network Design Problem," Transportation Research Part B: Methodological, Elsevier, vol. 172(C), pages 117-133.
    11. Li, Xiangyong & Wei, Kai & Guo, Zhaoxia & Wang, Wei & Aneja, Y.P., 2021. "An exact approach for the service network design problem with heterogeneous resource constraints," Omega, Elsevier, vol. 102(C).
    12. Tawfik, Christine & Gendron, Bernard & Limbourg, Sabine, 2022. "An iterative two-stage heuristic algorithm for a bilevel service network design and pricing model," European Journal of Operational Research, Elsevier, vol. 300(2), pages 512-526.
    13. Hewitt, Mike & Crainic, Teodor Gabriel & Nowak, Maciek & Rei, Walter, 2019. "Scheduled service network design with resource acquisition and management under uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 128(C), pages 324-343.
    14. Wang, Zujian & Qi, Mingyao & Cheng, Chun & Zhang, Canrong, 2019. "A hybrid algorithm for large-scale service network design considering a heterogeneous fleet," European Journal of Operational Research, Elsevier, vol. 276(2), pages 483-494.
    15. SteadieSeifi, M. & Dellaert, N.P. & Nuijten, W. & Van Woensel, T., 2017. "A metaheuristic for the multimodal network flow problem with product quality preservation and empty repositioning," Transportation Research Part B: Methodological, Elsevier, vol. 106(C), pages 321-344.
    16. SteadieSeifi, M. & Dellaert, N.P. & Nuijten, W. & Van Woensel, T. & Raoufi, R., 2014. "Multimodal freight transportation planning: A literature review," European Journal of Operational Research, Elsevier, vol. 233(1), pages 1-15.
    17. Eskandarzadeh, Saman & Fahimnia, Behnam, 2024. "Containerised parcel delivery: Modelling and performance evaluation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 186(C).
    18. Pérez Rivera, Arturo E. & Mes, Martijn R.K., 2017. "Anticipatory freight selection in intermodal long-haul round-trips," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 176-194.
    19. Crainic, Teodor Gabriel & Gendron, Bernard & Akhavan Kazemzadeh, Mohammad Rahim, 2022. "A taxonomy of multilayer network design and a survey of transportation and telecommunication applications," European Journal of Operational Research, Elsevier, vol. 303(1), pages 1-13.
    20. Dayarian, Iman & Rocco, Adolfo & Erera, Alan & Savelsbergh, Martin, 2022. "Operations design for high-velocity intra-city package service," Transportation Research Part B: Methodological, Elsevier, vol. 161(C), pages 150-168.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:299:y:2022:i:1:p:154-167. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.