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The multistage stochastic integer load planning problem

Cheng-Chang Lin and Jeffery Sung-Jan Lin

Transportation Research Part E: Logistics and Transportation Review, 2007, vol. 43, issue 2, 143-156

Abstract: Time-definite freight delivery common carriers, who pickup, consolidate and deliver small shipments are a key third-party logistics service provider in the supply chains. Under uncertain demands, carrier's multistage stochastic integer load planning in the pure hub-and-spoke line-haul operations network is to determine multistage freight paths and distribute trailers over time while meeting operational restrictions, service requirements, and balancing trailer inventory at the termination of planning horizon. We developed a heuristic approach, scenario aggregation with embedded branching on the binary variables. The numerical experiments showed a proactive operations strategy with a lower operating cost than the conventionally deterministic approach.

Keywords: Freight; transport; Hub-and-spoke; network; Operational; planning; Multistage; stochastic; program (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (4)

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