IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v38y1990i1p99-109.html
   My bibliography  Save this article

Solving a Freight Transport Problem Using Facility Location Techniques

Author

Listed:
  • John G. Klincewicz

    (AT&T Bell Laboratories, Holmdel, New Jersey)

Abstract

Use of consolidation terminals to transport products from various sources to various destinations can take advantage of economies of scale in transportation costs. Instead of making direct shipments, each source can ship in bulk to one or more consolidation terminals. There, shipments can be broken down, and material bound for the same destination can be combined. We consider such a freight transport problem (FTP). For each source–destination pair, it must be decided whether to ship the product directly or via a consolidation terminal. Shipping costs are piecewise linear concave functions of the volume shipped. Shipping via a terminal can also incur a linear inventory holding cost. We seek a minimum cost pattern of direct and indirect (i.e., via a terminal) shipments. This is a type of concave cost multiproduct network flow problem. We can solve this problem optimally if either the source-to-terminal or the terminal-to-destination shipping costs are linear. In this case, FTP decomposes into a set of concave cost facility location problems (CFLP). In more general cases, heuristic methods that solve sequences of linear problems can be used. Some computational results are presented.

Suggested Citation

  • John G. Klincewicz, 1990. "Solving a Freight Transport Problem Using Facility Location Techniques," Operations Research, INFORMS, vol. 38(1), pages 99-109, February.
    • Handle: RePEc:inm:oropre:v:38:y:1990:i:1:p:99-109
    DOI: 10.1287/opre.38.1.99
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/opre.38.1.99
    Download Restriction: no
    File URL: https://libkey.io/10.1287/opre.38.1.99?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
    ---><---

    Citations

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


    Cited by:

    1. Qin, Hu & Zhang, Zizhen & Qi, Zhuxuan & Lim, Andrew, 2014. "The freight consolidation and containerization problem," European Journal of Operational Research, Elsevier, vol. 234(1), pages 37-48.
    2. Troncoso, Juan J. & Garrido, Rodrigo A., 2005. "Forestry production and logistics planning: an analysis using mixed-integer programming," Forest Policy and Economics, Elsevier, vol. 7(4), pages 625-633, May.
    3. Aykin, Turgut, 1995. "The hub location and routing problem," European Journal of Operational Research, Elsevier, vol. 83(1), pages 200-219, May.
    4. Hanbazazah, Abdulkader S. & Abril, Luis & Erkoc, Murat & Shaikh, Nazrul, 2019. "Freight consolidation with divisible shipments, delivery time windows, and piecewise transportation costs," European Journal of Operational Research, Elsevier, vol. 276(1), pages 187-201.
    5. Cardinaels, Eddy, 2008. "The interplay between cost accounting knowledge and presentation formats in cost-based decision-making," Accounting, Organizations and Society, Elsevier, vol. 33(6), pages 582-602, August.
    6. Baumgartner, Kerstin & Fuetterer, André & Thonemann, Ulrich W., 2012. "Supply chain design considering economies of scale and transport frequencies," European Journal of Operational Research, Elsevier, vol. 218(3), pages 789-800.
    7. Baita, Flavio & Ukovich, Walter & Pesenti, Raffaele & Favaretto, Daniela, 1998. "Dynamic routing-and-inventory problems: a review," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(8), pages 585-598, November.
    8. Nowak, Maciek & Hewitt, Mike & Bachour, Hussam, 2019. "Mileage bands in freight transportation," European Journal of Operational Research, Elsevier, vol. 272(2), pages 549-564.

    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:inm:oropre:v:38:y:1990:i:1:p:99-109. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    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.