An Integrated Approach to Tactical Transportation Planning in Logistics Networks

The authors propose a new mathematical model for transport optimization in logistics networks on the tactical level. The main features include accurately modeled tariff structures and the integration of spatial and temporal consolidation effects via a cyclic pattern expansion. Using several graph-based gadgets, the authors are able to formulate their problem as a capacitated network design problem. To solve the model, the authors propose a local search procedure that reroutes flow of multiple commodities at once. Initial solutions are generated by various heuristics, relying on shortest path augmentations and linear programming (LP) techniques. As an important subproblem the authors identify the optimization of tariff selection on individual links, which they prove to be non-deterministic polynomial-time (NP)-hard and for which they derive exact as well as fast greedy approaches. The authors complement their heuristics by lower bounds from an aggregated mixed-integer programming formulation with strengthened inequalities. In a case study from the automotive, chemical, and retail industries, the authors prove that most of their solutions are within a single-digit percentage of the optimum.

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  • English

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  • Accession Number: 01603338
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 20 2016 10:44AM