Production , Manufacturing and Logistics Hub location – allocation in intermodal logistic networks

Within the context of intermodal logistics, the design of transportation networks becomes more complex than it is for single mode logistics. In an intermodal network, the respective modes are characterized by the transportation cost structure, modal connectivity, availability of transfer points and service time performance. These characteristics suggest the level of complexity involved in designing intermodal logistics networks. This research develops a mathematical model using the multiple-allocation p-hub median approach. The model encompasses the dynamics of individual modes of transportation through transportation costs, modal connectivity costs, and fixed location costs under service time requirements. A tabu search meta-heuristic is used to solve large size (100 node) problems. The solutions obtained using this meta-heuristic are compared with tight lower bounds developed using a Lagrangian relaxation approach. An experimental study evaluates the performance of the intermodal logistics networks and explores the effects and interactions of several factors on the design of intermodal hub networks subject to service time requirements.

[1]  Morton E. O'Kelly,et al.  The Location of Interacting Hub Facilities , 1986, Transp. Sci..

[2]  Andreas T. Ernst,et al.  Exact and heuristic algorithms for the uncapacitated multiple allocation p-hub median problem , 1998 .

[3]  Arthur M. Geoffrion,et al.  Lagrangian Relaxation for Integer Programming , 2010, 50 Years of Integer Programming.

[4]  Fred W. Glover,et al.  Tabu Search - Part I , 1989, INFORMS J. Comput..

[5]  Bart Jourquin,et al.  Optimal rail-road container terminal locations on the European network , 2009 .

[6]  Athanasios K. Ziliaskopoulos,et al.  An intermodal optimum path algorithm for multimodal networks with dynamic arc travel times and switching delays , 2000, Eur. J. Oper. Res..

[7]  Roberto Tadei,et al.  Solving the Hub location problem in telecommunication network design: A local search approach , 2004, Networks.

[8]  Illia Racunica,et al.  OPTIMAL LOCATION OF INTERMODAL FREIGHT HUBS , 2005 .

[9]  James F. Campbell,et al.  Integer programming formulations of discrete hub location problems , 1994 .

[10]  James H. Bookbinder,et al.  INTERMODAL ROUTING OF CANADA-MEXICO SHIPMENTS UNDER NAFTA , 1998 .

[11]  Claudio B. Cunha,et al.  A genetic algorithm for the problem of configuring a hub-and-spoke network for a LTL trucking company in Brazil , 2007, Eur. J. Oper. Res..

[12]  David A. Hensher,et al.  Handbook of Logistics and Supply-Chain Management , 2001 .

[13]  John E. Beasley,et al.  OR-Library: Distributing Test Problems by Electronic Mail , 1990 .

[14]  Andreas T. Ernst,et al.  Preprocessing and cutting for multiple allocation hub location problems , 2004, Eur. J. Oper. Res..

[15]  James F. Campbell.  Hub location for time definite transportation , 2009, Comput. Oper. Res..

[16]  Munirpallam A. Venkataramanan,et al.  Solution approaches to hub location problems , 1998, Ann. Oper. Res..

[17]  Cathy Macharis,et al.  Opportunities for OR in intermodal freight transport research: A review , 2004, Eur. J. Oper. Res..

[18]  Dominique Peeters,et al.  Modelling a rail/road intermodal transportation system , 2004 .

[19]  M. O'Kelly,et al.  A quadratic integer program for the location of interacting hub facilities , 1987 .

[20]  J. J. Trip,et al.  Is a new applied transportation research field emerging?--A review of intermodal rail-truck freight transport literature , 2004 .

[21]  J. G. Klincewicz,et al.  Avoiding local optima in thep-hub location problem using tabu search and GRASP , 1993, Ann. Oper. Res..

[22]  B. Slack,et al.  INTERMODAL TRANSPORTATION IN NORTH AMERICA AND THE DEVELOPMENT OF INLAND LOAD CENTERS , 1990 .

[23]  Andreas T. Ernst,et al.  Efficient algorithms for the uncapac-itated single allocation p-hub median problem , 1996 .

[24]  Reha Uzsoy,et al.  Experimental Evaluation of Heuristic Optimization Algorithms: A Tutorial , 2001, J. Heuristics.

[25]  Turgut Aykin,et al.  Networking Policies for Hub-and-Spoke Systems with Application to the Air Transportation System , 1995, Transp. Sci..

[26]  Jozef Kratica,et al.  Discrete Optimization Two genetic algorithms for solving the uncapacitated single allocation p-hub median problem , 2007 .

[27]  María Jesús Álvarez,et al.  Hub Location Under Capacity Constraints , 2007 .

[28]  Robert J. McCalla,et al.  GLOBAL CHANGE, LOCAL PAIN: INTERMODAL SEAPORT TERMINALS AND THEIR SERVICE AREAS , 1999 .

[29]  Marshall L. Fisher,et al.  An Applications Oriented Guide to Lagrangian Relaxation , 1985 .

[30]  D. Skorin-Kapov,et al.  On tabu search for the location of interacting hub facilities , 1994 .

[31]  Giovanni Storchi,et al.  Shortest viable path algorithm in multimodal networks , 2001 .

[32]  Sue Abdinnour-Helm,et al.  Using simulated annealing to solve the p‐Hub Median Problem , 2001 .

[33]  J. G. Klincewicz,et al.  Heuristics for the p-hub location problem , 1991 .

[34]  Marshall L. Fisher,et al.  The Lagrangian Relaxation Method for Solving Integer Programming Problems , 2004, Manag. Sci..

[35]  Hugues Marchand,et al.  Pour une localisation optimale des centres de transbordement intermodaux entre réseaux de transport: formulation et extensions , 2001 .

[36]  Sibel A. Alumur,et al.  Network hub location problems: The state of the art , 2008, Eur. J. Oper. Res..

[37]  James F. Campbell.  Hub Location and the p-Hub Median Problem , 1996, Oper. Res..

[38]  Fred Glover,et al.  Tabu Search - Part II , 1989, INFORMS J. Comput..

[39]  Lori Tavasszy,et al.  Towards collaborative, intermodal hub networks. A case study in the fast moving consumer goods market , 2005 .

[40]  Jadranka Skorin-Kapov,et al.  HUB NETWORK DESIGN WITH SINGLE AND MULTIPLE ALLOCATION: A COMPUTATIONAL STUDY , 1996 .

[41]  D. Skorin-Kapov,et al.  Tight linear programming relaxations of uncapacitated p-hub median problems , 1996 .

[42]  Haluk Topcuoglu,et al.  Solving the uncapacitated hub location problem using genetic algorithms , 2005, Comput. Oper. Res..

[43]  Sungsoo Park,et al.  Efficient solution procedure and reduced size formulations for p-hub location problems , 1998, Eur. J. Oper. Res..

[44]  James F. Campbell,et al.  Location and allocation for distribution systems with transshipments and transportion economies of scale , 1993, Ann. Oper. Res..