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The Break-Bulk Role of Terminals in Many-to-Many Logistic Networks

Author

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  • Carlos F. Daganzo

    (University of California, Berkeley, California)

Abstract

This paper examines the structure of many-to-many logistics networks. Using as little data as possible, it attempts to answer macroscopic questions such as: How many terminals should be used? Should they be used at all? What should be the frequency of service? Although such a problem could be formulated with a large number of parameters and data, we show that near-optimal network structures can be characterized by two dimensionless constants which can be determined from the data (e.g., from the value of the items carried, the number of origins, the size of the service region, etc …). The number of stops made by vehicles, for example, is proportional to powers of the dimensionless constants, the powers depending on the number of transhipments allowed. Similar expressions are given for other network descriptors and for the resulting cost. The simple formulas and principles embodied in the paper can lead to quick cost estimates and rough design plans, with a minimum of data, that can be fine-tuned with existing tools. We also highlight the difference between many-to-many and one-to-many (or many-to-one) networks: we describe the (break-bulk) role of terminals as swapping points, and quantify the benefits and disadvantages of routing vehicles through a terminal that lies in their desired general direction of travel.

Suggested Citation

  • Carlos F. Daganzo, 1987. "The Break-Bulk Role of Terminals in Many-to-Many Logistic Networks," Operations Research, INFORMS, vol. 35(4), pages 543-555, August.
    • Handle: RePEc:inm:oropre:v:35:y:1987:i:4:p:543-555
    DOI: 10.1287/opre.35.4.543
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    Cited by:

    1. Gong, Manlin & Hu, Yucong & Chen, Zhiwei & Li, Xiaopeng, 2021. "Transfer-based customized modular bus system design with passenger-route assignment optimization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    2. James F. Campbell & Morton E. O'Kelly, 2012. "Twenty-Five Years of Hub Location Research," Transportation Science, INFORMS, vol. 46(2), pages 153-169, May.
    3. Anne Lange & Werner Delfmann, 2017. "Network concentration indices for less-than-truckload transportation," Transportation, Springer, vol. 44(6), pages 1475-1497, November.
    4. Badia, Hugo & Argote-Cabanero , Juan & Daganzo, Carlos F., 2016. "Network Effects in Bus Transit: Evidence from Barcelona’s Nova Xarxa," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt3996t4c6, Institute of Transportation Studies, UC Berkeley.
    5. Raymond K. Cheung & B. Muralidharan, 2000. "Dynamic Routing for Priority Shipments in LTL Service Networks," Transportation Science, INFORMS, vol. 34(1), pages 86-98, February.
    6. Christian Brabänder & Maximilian Braun, 2020. "Bringing economies of integration into the costing of groupage freight," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(6), pages 366-385, December.
    7. Y Bouchery & Jan C Fransoo, 2015. "Cost, carbon emissions and modal shift in intermodal network design decisions," Post-Print hal-01954452, HAL.
    8. Anna Franceschetti & Ola Jabali & Gilbert Laporte, 2017. "Continuous approximation models in freight distribution management," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(3), pages 413-433, October.
    9. Badia, Hugo & Argote-Cabanero, Juan & Daganzo, Carlos F., 2017. "How network structure can boost and shape the demand for bus transit," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 83-94.
    10. Everette S. Gardner, 2004. "Dimensional Analysis of Airline Quality," Interfaces, INFORMS, vol. 34(4), pages 272-279, August.
    11. Bouchery, Yann & Fransoo, Jan, 2015. "Cost, carbon emissions and modal shift in intermodal network design decisions," International Journal of Production Economics, Elsevier, vol. 164(C), pages 388-399.
    12. Anton J. Kleywegt & Jason D. Papastavrou, 1998. "Acceptance and Dispatching Policies for a Distribution Problem," Transportation Science, INFORMS, vol. 32(2), pages 127-141, May.
    13. Fialkoff, Marc R. & Hancock, Kathleen L. & Peterson, Steven K., 2018. "A method for processing the Confidential Carload Waybill Sample for railroad freight analysis," Research in Transportation Economics, Elsevier, vol. 71(C), pages 34-43.
    14. Alumur, Sibel A. & Campbell, James F. & Contreras, Ivan & Kara, Bahar Y. & Marianov, Vladimir & O’Kelly, Morton E., 2021. "Perspectives on modeling hub location problems," European Journal of Operational Research, Elsevier, vol. 291(1), pages 1-17.
    15. Catalano, Mario & Migliore, Marco, 2014. "A Stackelberg-game approach to support the design of logistic terminals," Journal of Transport Geography, Elsevier, vol. 41(C), pages 63-73.
    16. Langevin, André & Mbaraga, Pontien & Campbell, James F., 1996. "Continuous approximation models in freight distribution: An overview," Transportation Research Part B: Methodological, Elsevier, vol. 30(3), pages 163-188, June.

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