Characterizing the Tradeoffs and Costs Associated with Transportation Congestion in Supply Chains
The authors consider distribution and location-planning models for supply chains that explicitly account for traffic congestion effects. The majority of facility location and transportation planning models in the operations research literature consider facility operations and transportation costs as separable (e.g., linear) by origin-destination pairs. Their goal is to understand how congestion costs and effects, which are not separable, influence supply chain location and distribution decisions. The authors study a competitive facility location and market-supply game with multiple firms competing in multiple markets in a congested distribution network. As a result of location and quantity decisions, firms are subject to location-specific transportation costs, convex traffic congestion costs and fixed facility location costs. The unit price in each market is a linear decreasing function of the total amount shipped to the market by all firms; that is, the authors consider an oligopolistic Cournot game and analyze the two-stage Nash Equilibrium. They discuss the results of extensive numerical studies that illustrate the effects of traffic congestion on a firm's equilibrium location and quantity decisions and demonstrate the efficiency of their solution approaches for finding equilibrium solutions.
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Supplemental Notes:
- This research was sponsored by the U.S. Department of Transportation, University Transportation Centers Program.
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Corporate Authors:
University of Florida, Gainesville
Department of Industrial and Systems Engineering
Gainesville, FL United States 32611Center for Multimodal Solutions for Congestion Mitigation
University of Florida, 10516 SW 22nd Avenue
Gainesville, FL United States 32607-3269Research and Innovative Technology Administration
1200 New Jersey Avenue, SE
Washington, DC United States 20590 -
Authors:
- Geunes, Joseph
- Konur, Dincer
- Publication Date: 2010-1-21
Language
- English
Media Info
- Media Type: Print
- Edition: Final Report
- Features: Appendices; Figures; References; Tables;
- Pagination: 60p
Subject/Index Terms
- TRT Terms: Costs; Decision making; Equilibrium (Economics); Industrial location; Markets; Physical distribution; Supply chain management; Traffic congestion
- Uncontrolled Terms: Oligopoly
- Subject Areas: Freight Transportation; Highways; Planning and Forecasting; I72: Traffic and Transport Planning;
Filing Info
- Accession Number: 01154169
- Record Type: Publication
- Report/Paper Numbers: CMS Project No. 2008-004
- Files: UTC, NTL, TRIS, USDOT
- Created Date: Apr 5 2010 4:10PM