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The multistage stochastic integer load planning problem

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  • Lin, Cheng-Chang
  • Lin, Jeffery Sung-Jan

Abstract

Time-definite freight delivery common carriers, who pickup, consolidate and deliver small shipments are a key third-party logistics service provider in the supply chains. Under uncertain demands, carrier's multistage stochastic integer load planning in the pure hub-and-spoke line-haul operations network is to determine multistage freight paths and distribute trailers over time while meeting operational restrictions, service requirements, and balancing trailer inventory at the termination of planning horizon. We developed a heuristic approach, scenario aggregation with embedded branching on the binary variables. The numerical experiments showed a proactive operations strategy with a lower operating cost than the conventionally deterministic approach.

Suggested Citation

  • Lin, Cheng-Chang & Lin, Jeffery Sung-Jan, 2007. "The multistage stochastic integer load planning problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(2), pages 143-156, March.
    • Handle: RePEc:eee:transe:v:43:y:2007:i:2:p:143-156
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    Citations

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    Cited by:

    1. Huang Xing, 2017. "The decision method of emergency supplies collection with fuzzy demand constraint under background of sudden disaster," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 85(2), pages 869-886, January.
    2. G. Guastaroba & M. G. Speranza & D. Vigo, 2016. "Intermediate Facilities in Freight Transportation Planning: A Survey," Transportation Science, INFORMS, vol. 50(3), pages 763-789, August.
    3. Piera Centobelli & Roberto Cerchione & Emilio Esposito & Shashi, 2020. "Evaluating environmental sustainability strategies in freight transport and logistics industry," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1563-1574, March.
    4. Ahmad Baubaid & Natashia Boland & Martin Savelsbergh, 2021. "The Value of Limited Flexibility in Service Network Designs," Transportation Science, INFORMS, vol. 55(1), pages 52-74, 1-2.

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