Service network design models for two-tier city logistics

This paper focuses on two-tier city logistics systems for advanced management of urban freight activities and, in particular, on the first layer of such systems where freight is moved from distribution centers on the outskirts of the city to satellite platforms by urban vehicles, from where it will be distributed to customers by a different fleet of dedicated vehicles. We address the issue of planning the services of this first tier system, that is, select services, their routes and schedules, and determine the itineraries of the customer-demand flows through these facilities and services. We propose a general scheduled service network design modelling framework that captures the fundamental concepts related to the definition of urban-vehicle tactical plans within a two-tier distribution network. We examine several operational assumptions regarding the management of the urban-vehicle fleet and the flexibility associated with the delivery of goods, and show how the proposed modelling framework can evolve to represent an increasing level of detail. A discussion of algorithmic perspectives completes the paper.     

A stochastic bi-objective location model for strategic reverse logistics

In this paper we propose a comprehensive model for reverse logistics planning where many real-world features are considered such as the existence of several facility echelons, multiple commodities, choice of technology and stochasticity associated with transportation costs and waste generation. Moreover, we adopt a bi-objective model for the problem. First, the cost for building and operating the network is to be minimized. Second, the obnoxious effect caused by the reverse network facilities is also to be minimized. A two-stage stochastic bi-objective mixed-integer programming formulation is proposed, in which the strategic decisions are considered in the first stage and the tactical/operational decisions in the second one. A set of different scenarios is considered, and the extensive form of the deterministic equivalent problem is presented. This model is tested with a case study based on some data from the Spanish province of Cordoba. Nondominated solutions are obtained by combining the two different objectives and by using a general solver.     

Multi-period reverse logistics network design for used refrigerators

This paper focuses on the design of a multi-stage reverse logistics network for product recovery. Different recovery options such as product remanufacturing, component repairing and material recycling are simultaneously considered. Initially, we propose a mixed integer linear programming model – with a profit maximization objective – for the network design problem. The structure of the product, by way of bill of materials (BOM), is also incorporated into the proposed model in order to analyze the flow at component and material levels. Sensitivity analysis is carried out to study the effects of variations in the values of the input parameters such as product return quantity, unit transportation cost per unit distance, and unit processing cost. The analysis shows that the design decisions of different facilities considerably change even for 5–20%% variations in input parameter values. This led to the development of a refined mathematical model which incorporates variations in the different input parameter values over time. The new model provides a unified design for the entire planning horizon and has been validated with the design of a used refrigerator recovery network.     

An optimization model for the design of a capacitated multi-product reverse logistics network with uncertainty

In this work the design of a reverse distribution network is studied. Most of the proposed models on the subject are case based and, for that reason, they lack generality. In this paper we try to overcome this limitation and a generalized model is proposed. It contemplates the design of a generic reverse logistics network where capacity limits, multi-product management and uncertainty on product demands and returns are considered. A mixed integer formulation is developed which is solved using standard B&B techniques. The model is applied to an illustrative case.     

Concurrent optimization in designing for logistics support

Concurrent Engineering has always been an important field within military industry and is gaining recognition within commercial industry as well. Studies have suggested that long-range research efforts need to be directed to the area of integrated logistics. In order to satisfy the overall logistics objectives, product designs must incorporate consideration of the impact that design decisions have on operations, maintenance, transportation and supply. This paper presents a model that carries out a concurrent optimization of a product design and its associated manufacturing and logistics support systems. We offer this model as a framework for decision support of concurrent engineering activities.     

A cutting plane algorithm for the Capacitated Connected Facility Location Problem

We consider a network design problem that arises in the cost-optimal design of last mile telecommunication networks. It extends the Connected Facility Location problem by introducing capacities on the facilities and links of the networks. It combines aspects of the capacitated network design problem and the single-source capacitated facility location problem. We refer to it as the Capacitated Connected Facility Location Problem. We develop a basic integer programming model based on single-commodity flows. Based on valid inequalities for the capacitated network design problem and the single-source capacitated facility location problem we derive several (new) classes of valid inequalities for the Capacitated Connected Facility Location Problem including cut set inequalities, cover inequalities and combinations thereof. We use them in a branch-and-cut framework and show their applicability and efficacy on a set of real-world instances.     

An integrated model for logistics network design

In this paper we introduce a new formulation of the logistics network design problem encountered in deterministic, single-country, single-period contexts. Our formulation is flexible and integrates location and capacity choices for plants and warehouses with supplier and transportation mode selection, product range assignment and product flows. We next describe two approaches for solving the problem---a simplex-based branch-and-bound and a Benders decomposition approach. We then propose valid inequalities to strengthen the LP relaxation of the model and improve both algorithms. The computational experiments we conducted on realistic randomly generated data sets show that Benders decomposition is somewhat more advantageous on the more difficult problems. They also highlight the considerable performance improvement that the valid inequalities produce in both solution methods. Furthermore, when these constraints are incorporated in the Benders decomposition algorithm, this offers outstanding reoptimization capabilities.     

A new multi-objective stochastic model for a forward/reverse logistic network design with responsiveness and quality level

Logistic network design has an important and strategic platform in an efficient and effective supply chain management, and usually involves multiple and conflicting goals, such as cost/profit, resource balance, customer responsiveness, quality, and the like. Besides, due to the implementation of government legislation, environmental concern, social responsibility and customer awareness, companies have been forced by customers not only to supply environmentally amicable products but also to be responsible for the returned products. Hence, this paper presents a stochastic multi-objective model for forward/reverse logistic network design under a uncertain environment including three echelons in forward direction (i.e., suppliers, plants, and distribution centers) and two echelons in backward direction (i.e., collection centers and disposal centers). We demonstrate a method to evaluate the systematic supply chain configuration maximizing the profit, customer responsiveness, and quality as objectives of the logistic network. The set of Pareto optimal solutions is obtained and also financial risk relevant to them is computed in order to show the tradeoff between objectives. The results give important insight for fostering the decision making process.     

Parking Capacity and Pricing in Park'n Ride Trips: A Continuous Equilibrium Network Design Problem

In this paper we consider the problem of designing parking facilities for park'n ride trips. We present a new continuous equilibrium network design problem to decide the capacity and fare of these parking lots at a tactical level. We assume that the parking facilities have already been located and other topological decisions have already been taken.The modeling approach proposed is mathematical programming with equilibrium constraints. In the outer optimization problem, a central Authority evaluates the performance of the transport network for each network design decision. In the inner problem a multimodal traffic assignment with combined modes, formulated as a variational inequality problem, generates the share demand for modes of transportation, and for parking facilities as a function of the design variables of the parking lots. The objective is to make optimal parking investment and pricing decisions in order to minimize the total travel cost in a subnetwork of the multimodal transportation system.We present a new development in model formulation based on the use of generalized parking link cost as a design variable.The bilevel model is solved by a simulated annealing algorithm applied to the continuous and non-negative design decision variables. Numerical tests are reported in order to illustrate the use of the model, and the ability of the approach to solve applications of moderate size.     

Supply chain network capacity competition with outsourcing: a variational equilibrium framework

This paper develops a supply chain network game theory framework with multiple manufacturers/producers, with multiple manufacturing plants, who own distribution centers and distribute their products, which are distinguished by brands, to demand markets, while maximizing profits and competing noncooperatively. The manufacturers also may avail themselves of external distribution centers for storing their products and freight service provision. The manufacturers have capacities associated with their supply chain network links and the external distribution centers also have capacitated storage and distribution capacities for their links, which are shared among the manufacturers and competed for. We utilize a special case of the Generalized Nash Equilibrium problem, known as a variational equilibrium, in order to formulate and solve the problem. A case study on apple farmers in Massachusetts is provided with various scenarios, including a supply chain disruption, to illustrate the modeling and methodological framework as well as the potential benefits of outsourcing in this sector.     

A capacity scaling heuristic for the multicommodity capacitated network design problem

In this paper, we propose a capacity scaling heuristic using a column generation and row generation technique to address the multicommodity capacitated network design problem. The capacity scaling heuristic is an approximate iterative solution method for capacitated network problems based on changing arc capacities, which depend on flow volumes on the arcs. By combining a column and row generation technique and a strong formulation including forcing constraints, this heuristic derives high quality results, and computational effort can be reduced considerably. The capacity scaling heuristic offers one of the best current results among approximate solution algorithms designed to address the multicommodity capacitated network design problem.     

A Benders decomposition approach for a distribution network design problem with consolidation and capacity considerations

We develop a model for a strategic freight-forwarding network design problem in which the design decisions involve the locations and capacities of consolidation and deconsolidation centers, and capacities on linehaul linkages as well as the shipment routes from origins to destinations through centers. We devise a solution approach based on Benders decomposition and conduct a computational study that illustrates the efficiency and the effectiveness of the approach.     

考虑需求不确定的多级应急物流设施选址研究

为了对急物流设施选址问题进行合理的研究,建立了包含配送中心、配送点和需求点的多级应急物流网络。基于应急物资需求特点,使用三角模糊数表示应急物资需求的不确定性,同时考虑应急救援成本和应急救援时间两个目标,建立了应急物流设施选址模型。采用去模糊化方法将三角模糊数转化为确定数,利用成本和时间的单目标的最优结果将多目标转化为相对值,再对时间和成本目标进行加权处理,既消除了不同目标之间的单位及数量级差异,还可以进行动态调整。设计了遗传算法对模型进行求解,通过实际算例表明了模型和算法可以有效地解决应急物流设施选址问题。     

Discrete Capacity Assignment in IP networks using Particle Swarm Optimization

This paper presents a design methodology for IP networks under end-to-end Quality-of-Service (QoS) constraints. Particularly, we consider a more realistic problem formulation in which the link capacities of a general-topology packet network are discrete variables. This Discrete Capacity Assignment (DCA) problem can be classified as a constrained combinatorial optimization problem. A refined TCP/IP traffic modeling technique is also considered in order to estimate performance metrics for networks loaded by realistic traffic patterns. We propose a discrete variable Particle Swarm Optimization (PSO) procedure to find solutions for the problem. A simple approach called Bottleneck Link Heuristic (BLH) is also proposed to obtain admissible solutions in a fast way. The PSO performance, compared to that one of an exhaustive search (ES) procedure, suggests that the PSO algorithm provides a quite efficient approach to obtain (near) optimal solutions with small computational effort.     

Capacitated facility location/network design problems

We introduce a combined facility location/network design problem in which facilities have constraining capacities on the amount of demand they can serve. This model has a number of applications in regional planning, distribution, telecommunications, energy management, and other areas. Our model includes the classical capacitated facility location problem (CFLP) on a network as a special case. We present a mixed integer programming formulation of the problem, and several classes of valid inequalities are derived to strengthen its LP relaxation. Computational experience with problems with up to 40 nodes and 160 candidate links is reported, and a sensitivity analysis provides insight into the behavior of the model in response to changes in key problem parameters.     

A warehouse-based design model for reverse logistics

In this paper, an MILP formulation is proposed for the design of a reverse logistics network based on a warehouse location–allocation model, which optimizes, simultaneously, the forward and reverse networks. A single product model with unlimited capacity is first defined. Subsequently, the model is extended to a multi-product capacitated recovery network model, where capacity limitations and a multi-product system can be considered. The proposed model is compared to published work in the field, where different model assumptions have been proposed. Two cases are described so as to gain a better insight into the model and allow a comparative analysis.     

Global optimization of multilevel electricity market models including network design and graph partitioning

We consider the combination of a network design and graph partitioning model in a multilevel framework for determining the optimal network expansion and the optimal zonal configuration of zonal pricing electricity markets, which is an extension of the model discussed in Grimm et al. (2019) that does not include a network design problem. The two classical discrete optimization problems of network design and graph partitioning together with nonlinearities due to economic modeling yield extremely challenging mixed-integer nonlinear multilevel models for which we develop two problem-tailored solution techniques. The first approach relies on an equivalent bilevel formulation and a standard KKT transformation thereof including novel primal-dual bound tightening techniques, whereas the second is a tailored generalized Benders decomposition. For the latter, we strengthen the Benders cuts of Grimm et al. (2019) by using the structure of the newly introduced network design subproblem. We prove for both methods that they yield global optimal solutions. Afterward, we compare the approaches in a numerical study and show that the tailored Benders approach clearly outperforms the standard KKT transformation. Finally, we present a case study that illustrates the economic effects that are captured in our model.     

Reliable design of a logistics network under uncertainty: A fuzzy possibilistic-queuing model

This paper proposes a bi-objective model for designing a reliable network of bi-directional facilities in logistics network under uncertainties. For this purpose, the model utilizes an effective reliability approach to find a robust logistics network design. The objectives of the model are to minimize the total costs and the expected transportation costs after failures of bi-directional facilities of the logistics network. To solve the model, a new solution approach is proposed by combining queuing theory, fuzzy possibilistic programming and fuzzy multi-objective programming. Finally, the computational experiments are provided to illustrate the effectiveness of the proposed model and solution approach.     

Performance analysis and design of supply chains: a Petri net approach

In this paper, we investigated a dynamic modelling technique for analysing supply chain networks using generalised stochastic Petri nets (GSPNs). The customer order arrival process is assumed to be Poisson and the service processes at the various facilities of the supply chain are assumed to be exponential. Our model takes into account both the procurement process and delivery logistics that exist between any two members of the supply chain. We compare the performance of two production planning and control policies, the make-to-stock and the assemble-to-order systems in terms of total cost which is the sum of inventory carrying cost and cost incurred due to delayed deliveries. We formulate and solve the decoupling point location problem in supply chains as a total relevant cost (sum of inventory carrying cost and the delay costs) minimisation problem. We use the framework of integrated GSPN-queuing network modelling—with the GSPN at the higher level and a generalised queuing network at the lower level—to solve the decoupling point location problem.     

The two-echelon capacitated electric vehicle routing problem with battery swapping stations: Formulation and efficient methodology

In this paper, we present a two-echelon capacitated electric vehicle routing problem with battery swapping stations (2E-EVRP-BSS), which aims to determine the delivery strategy under battery driving range limitations for city logistics. The electric vehicles operating in the different echelons have different load capacities, battery driving ranges, power consumption rates, and battery swapping costs. We propose an integer programming formulation and a hybrid algorithm that combines a column generation and an adaptive large neighborhood search (CG-ALNS) to solve the problem. We conducted extensive computational experiments, demonstrate the applicability of the proposed model, and show the efficiency of the CG-ALNS algorithm. In addition, we explore the interplay between battery driving range and the effectiveness of vehicle emission reduction through sensitivity analysis.