The Break-Bulk Role of Terminals in Many-to-Many Logistic Networks

Carlos F. Daganzo
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Carlos F. Daganzo: University of California, Berkeley, California

Operations Research, 1987, vol. 35, issue 4, 543-555

Abstract: This paper examines the structure of many-to-many logistics networks. Using as little data as possible, it attempts to answer macroscopic questions such as: How many terminals should be used? Should they be used at all? What should be the frequency of service? Although such a problem could be formulated with a large number of parameters and data, we show that near-optimal network structures can be characterized by two dimensionless constants which can be determined from the data (e.g., from the value of the items carried, the number of origins, the size of the service region, etc …). The number of stops made by vehicles, for example, is proportional to powers of the dimensionless constants, the powers depending on the number of transhipments allowed. Similar expressions are given for other network descriptors and for the resulting cost. The simple formulas and principles embodied in the paper can lead to quick cost estimates and rough design plans, with a minimum of data, that can be fine-tuned with existing tools. We also highlight the difference between many-to-many and one-to-many (or many-to-one) networks: we describe the (break-bulk) role of terminals as swapping points, and quantify the benefits and disadvantages of routing vehicles through a terminal that lies in their desired general direction of travel.

Keywords: 333; 831 many-to-many logistics networks; 481 many-to-many distribution (search for similar items in EconPapers)
Date: 1987
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