Hierarchical parcel distribution facility ground network design problem

Omar Ben-Ayed

International Journal of Logistics Economics and Globalisation, 2010, vol. 2, issue 3, 250-269

Abstract: This paper is concerned with the network design problem for parcel ground distribution facilities. The design involves three interacting levels of facilities in addition to customers, with each lower level being assigned to exactly one higher level. The link cost, depending on the transportation mode, is expressed as a function of the link load, which is determined by the assignment variables. The resulting model is a complex integer program with non-linear objective function. The model is solved by a heuristic method where the lower-level solution provides input data for the higher-level one. The method is illustrated with an example based on a real world application.

Keywords: hierarchical facilities; multi-level facilities; parcel distribution; network design; p-median; fixed costs; hub-and-spoke; facility location; ground distribution; interacting levels; customers; lower levels; higher levels; link costs; transportation modes; loads; assignment variables; complex integers; non-linear objectives; heuristic methods; input data; logistics management. (search for similar items in EconPapers)
Date: 2010
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