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Integrating long-haul and local transportation planning: the Service Network Design and Routing Problem

Author

Listed:
  • Juliette Medina

    (LS2N, UMR CNRS 6004
    CRC Services)

  • Mike Hewitt

    (Loyola University Chicago)

  • Fabien Lehuédé

    (LS2N, UMR CNRS 6004)

  • Olivier Péton

    (LS2N, UMR CNRS 6004)

Abstract

We introduce a new optimization problem, the Service Network Design and Routing Problem that integrates long-haul and local transportation planning decisions. Such a problem is particularly important for consolidation carriers that face customer demands for fast delivery and thus must synchronize the different levels of their transportation operations. We present two formulations of the problem: (1) a route-based formulation that allows for the modeling of a rich set of rules governing local delivery routes at the expense of increased instance size and computational solve time, and, (2) an arc-based formulation that can be solved more quickly but has less modeling power. We solve each with a Dynamic Discretization Discovery algorithm that was recently proposed and designed for solving Service Network Design problems that require the precise modeling of time. With an extensive computational study, we examine the benefits of each formulation.

Suggested Citation

  • Juliette Medina & Mike Hewitt & Fabien Lehuédé & Olivier Péton, 2019. "Integrating long-haul and local transportation planning: the Service Network Design and Routing Problem," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 8(2), pages 119-145, June.
    • Handle: RePEc:spr:eurjtl:v:8:y:2019:i:2:d:10.1007_s13676-017-0114-7
    DOI: 10.1007/s13676-017-0114-7
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    References listed on IDEAS

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    1. Gerardo Berbeglia & Jean-François Cordeau & Irina Gribkovskaia & Gilbert Laporte, 2007. "Rejoinder on: Static pickup and delivery problems: a classification scheme and survey," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 15(1), pages 45-47, July.
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    8. 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.
    9. Michael Drexl, 2012. "Synchronization in Vehicle Routing---A Survey of VRPs with Multiple Synchronization Constraints," Transportation Science, INFORMS, vol. 46(3), pages 297-316, August.
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    Cited by:

    1. Scherr, Yannick Oskar & Hewitt, Mike & Neumann Saavedra, Bruno Albert & Mattfeld, Dirk Christian, 2020. "Dynamic discretization discovery for the service network design problem with mixed autonomous fleets," Transportation Research Part B: Methodological, Elsevier, vol. 141(C), pages 164-195.
    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. Geng, Sunyue & Liu, Sifeng & Fang, Zhigeng, 2022. "An agent-based algorithm for dynamic routing in service networks," European Journal of Operational Research, Elsevier, vol. 303(2), pages 719-734.
    4. Vu, Duc Minh & Hewitt, Mike & Vu, Duc D., 2022. "Solving the time dependent minimum tour duration and delivery man problems with dynamic discretization discovery," European Journal of Operational Research, Elsevier, vol. 302(3), pages 831-846.
    5. Belieres, Simon & Hewitt, Mike & Jozefowiez, Nicolas & Semet, Frédéric, 2021. "A time-expanded network reduction matheuristic for the logistics service network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    6. Soares, Ricardo & Marques, Alexandra & Amorim, Pedro & Parragh, Sophie N., 2024. "Synchronisation in vehicle routing: Classification schema, modelling framework and literature review," European Journal of Operational Research, Elsevier, vol. 313(3), pages 817-840.
    7. 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.

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