A new planning model to support logistics service providers in selecting mode, route, and terminal location

Abstract

In this paper, we address thefreight network design problem. A mixed integer linear program is formulated to help logistics service providers jointlyselect the best terminal locations among a set of candidate locations, shipping modes, and route for shipping different types of commodities. The developed model isapplied to two different networksto show its applicability. Results obtained from CPLEX for the case studiesare presented, and the benefit of the proposed model is discussed.Key words: Intermodal transport; Freight logistics; Network design; Facility location; Routing; Mode choice Nathan Huynh, Ph.D., Assistant Professor Fateme Fotuhi, M.Sc. University of South Carolina, Columbia, SC USA Figure 1 illustrates a simple intermodal freight transportation network that consists of shipping origins and destinations, highway network that connects all origins and all destinations, limited number of intermodal terminals, and rail, air, or barge networks that connect the various intermodal terminals; an intermodal terminal is the location where freight is transferred between different modes. In this illustration, it can be seen that freight can be shipped directly from an origin to a destination using only the highway mode. Alternatively, freight can be shipped first to a nearby intermodal terminal, then shipped to another intermodal terminal near the destination using another mode such as rail, air, or barge, and finally delivered to the destination using the highway mode.It is evident that the optimal method of shipping will depend on the distance between the origin and destination, the proximity of intermodal terminals to the origin and destination, the type of intermodal terminal available (i.e. rail, air, or barge), and the transport and transfer cost. This paper takes the perspective of logistics service providers who are tasked to serve a multiregional customer base (Ishfaq, 2010). Of particular interest to these decision makers is the managementof shipments between origins and destinationthrough the use of different modes, routes, as well as logistic hubs. At a strategic planning level, these service providers need to develop long-term policies on terminal locations, modes, and routes to lower costs.To assist these logistics service providers with their decision making, this paper proposes a new model that jointly considers a number of factors: establishing a predefined number of intermodal terminals at strategic locations, type of intermodal terminals that should be created, shipping mode, and route for POLISH MARITIME RESEARCH Special Issue 2013 S1 (79) 2013 pp. 67-73 10.2478/pomr-2013 shipping commodities. Additionally, it is envisioned that the proposed model could be used by thedecision maker to estimate how many intermodal terminals are needed to maximize return on investment.To our knowledge, this is the first model that addresses multiple decisions jointly in the design of the intermodal freight network.The remainder of this paper is organized as follows. Section 2 provides a review of rel...

Multi-objective Optimization of Freight Route Choices in Multimodal Transportation

“…The previous research found that route selection is a fundamental problem of multimodal transportation and logistics management [17,18]. A large number of literature has been published in the area of multimodal route selection.…”

“…The problem is formulated by using Eqs. (5)(6)(7)(8)(9)(10)(11)(12)(13)(14)(15)(16)(17)(18). The significant weights obtained using the AHP method in the previous phase are added into the objective function of ZOGP.…”

“…Equations (15)(16)(17)(18) create controls to ensure that only one route is optimum for a given situation. If the transportation cost, time, and risks are greater than the user limitations, the route will not be considered.…”

A Simulated Annealing Algorithm for Intermodal Transportation on Incomplete Networks

“…Deterministic models [1,5,9-11,13,14,17,25-27,32] Stochastic/fuzzy models [3,7,8,12,15,16,34,42,48,49] Exact methods [1,7,8,11,25] heuristic methods [10,12,15,27,32,50] To our knowledge, we are the first to build a model for an intermodal transportation network considering the general case when the induced graph by the located rail terminals is an incomplete graph. The proposed model is a mixed linear program that provides optimal solutions to achieve a balanced intermodal network.…”

Dynamic Model for System-Level Strategic Intermodal Facility Investment Planning

“…Other studies have modeled transit hub capacity limits but did not consider the congestion effect (15,16). Some studies considered only transshipment costs (the second need) without factoring congestion costs (17)(18)(19)(20). For shippers, the costs of both transshipment and delay can significantly affect transportation decisions.…”