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One-to-Many Distribution with Transshipments: An Analytic Model

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  • James F. Campbell

    (University of Missouri-St. Louis, St. Louis, Missouri 63121-4499)

Abstract

This paper presents and optimizes two cases of an approximate analytic model of distribution from a single origin to many destinations via transshipment terminals. Linehaul vehicles carry items from the origin to terminals and local vehicles make deliveries on peddling routes from the terminals. It has been shown that transshipments are not desirable when local vehicles can be as large as linehaul vehicles. This paper limits the size of local vehicles and explores conditions under which transshipments are desirable. This paper focuses on situations in which local vehicles operate on multi-stop tours. The tradeoffs between the transportation, inventory and terminal cost components determine optimal values for the number of terminals, the number of stops per vehicle route and the distribution cost. The optimal type of distribution system is shown to depend on the ratio of the linehaul to local vehicle load size. Examples are presented that show how distribution via terminals can reduce the total cost.

Suggested Citation

  • James F. Campbell, 1993. "One-to-Many Distribution with Transshipments: An Analytic Model," Transportation Science, INFORMS, vol. 27(4), pages 330-340, November.
    • Handle: RePEc:inm:ortrsc:v:27:y:1993:i:4:p:330-340
    DOI: 10.1287/trsc.27.4.330
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    Cited by:

    1. A Dasci & G Laporte, 2005. "An analytical approach to the facility location and capacity acquisition problem under demand uncertainty," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(4), pages 397-405, April.
    2. Tingting Cui & Yanfeng Ouyang & Zuo-Jun Max Shen, 2010. "Reliable Facility Location Design Under the Risk of Disruptions," Operations Research, INFORMS, vol. 58(4-part-1), pages 998-1011, August.
    3. Li, Xiaopeng & Ma, Jiaqi & Cui, Jianxun & Ghiasi, Amir & Zhou, Fang, 2016. "Design framework of large-scale one-way electric vehicle sharing systems: A continuum approximation model," Transportation Research Part B: Methodological, Elsevier, vol. 88(C), pages 21-45.
    4. Alderighi, Marco & Piga, Claudio A., 2008. "Why should a firm choose to limit the size of its market area?," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 191-201, March.
    5. Di Huang & Weiping Tong & Lumeng Wang & Xun Yang, 2019. "An Analytical Model for the Many-to-One Demand Responsive Transit Systems," Sustainability, MDPI, vol. 12(1), pages 1-17, December.
    6. 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.
    7. Oded Berman & Qian Wang, 2006. "Inbound Logistic Planning: Minimizing Transportation and Inventory Cost," Transportation Science, INFORMS, vol. 40(3), pages 287-299, August.
    8. Campbell, James F., 1995. "Using small trucks to circumvent large truck restrictions: Impacts on truck emissions and performance measures," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(6), pages 445-458, November.
    9. Marco Alderighi, 2006. "Why Should a Firm Choose to Limit the Size of Its Market Area?," ERSA conference papers ersa06p900, European Regional Science Association.
    10. Marco Alderighi, 2003. "Niche Markets and Electronic Commerce," KITeS Working Papers 147, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Jul 2003.
    11. Li, Xiaopeng & Ouyang, Yanfeng, 2010. "A continuum approximation approach to reliable facility location design under correlated probabilistic disruptions," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 535-548, May.
    12. John Gunnar Carlsson & Fan Jia, 2015. "Continuous Facility Location with Backbone Network Costs," Transportation Science, INFORMS, vol. 49(3), pages 433-451, August.
    13. Ellegood, William A. & Campbell, James F. & North, Jeremy, 2015. "Continuous approximation models for mixed load school bus routing," Transportation Research Part B: Methodological, Elsevier, vol. 77(C), pages 182-198.
    14. 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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