Freight transport and distribution : concepts and optimisation models

This Book Serves As A Primer On Freight Transportation And Logistics, Providing A General And Broad Coverage Of Concepts, Mathematical Models And Methodologies Available For Freight Transportation Planning At Strategic, Tactical And Operational Levels. It Is Aimed At Graduate Students, And Is Also A Reference Book For Practitioners In The Field. The Book Includes Preliminaries, Such As Mathematical Modeling And Optimisation Algorithms. The Book Also Features Case Studies And Practical Real-life Examples To Illustrate Applications Of The Concepts And Models Covered, And To Encourage A Hands-on And A Practical Approach. The Author Has Taught And Published Extensively In The Field And Draw On State-of-the-art Scientific Research. He Has Also Been Part Of A Number Of Practical Research Projects, Which Underpin The Real Life Examples In The Book--provided By Publisher. 1. Freight Logistics, Distribution And Transport: Concepts -- 2. Location In Networks -- 3. Transportation And Service Networks -- 4. Routing Problems -- 5. Integrated Routing Problems -- 6. Green Freight Distribution -- 7. Collaboration In Freight Distribution -- 8. Methodology. Tolga Bektas. Includes Bibliographical References And Index. Cover 1 Half Title 2 Title Page 4 Copyright Page 5 Dedication 6 Table of Contents 8 Foreword 14 Preface 16 1: Freight logistics, distribution and transport: Concepts 20 1.1 Actors 20 1.1.1 Shippers 21 1.1.2 Carriers 21 1.1.3 Intermediaries 21 1.2 Modes of transportation 22 1.2.1 Road 22 1.2.2 Rail 23 1.2.3 Air 25 1.2.4 Sea 25 1.2.5 Intermodal transportation 26 1.2.6 Intermodal terminals 28 1.2.6.1 Containerised transport 28 1.3 Choice of carrier and transportation mode 29 1.4 Shipment options 30 1.4.1 Direct and customised shipments 30 1.4.2 Consolidated shipments 30 1.5 Distribution structures 31 1.5.1 Single-echelon 31 1.5.2 Multi-echelon 31 References and further reading 33 2: Location in networks 34 2.1 Hub location problems 36 2.2 Common notation 38 2.3 p-Hub median problems 38 2.3.1 Single-allocation p-hub median problem 38 2.3.1.1 Quadratic integer programming formulation 38 2.3.1.2 Integer linear programming formulations 40 2.3.2 Multiple-allocation p-hub median problem 47 2.4 Capacitated hub location problems 49 2.5 Other types of hub location problems 51 2.5.1 p-Hub centre problem 51 2.5.2 Hub covering problem 56 2.6 Congestion in hub location problems 58 2.7 Facility location problems 60 2.7.1 Uncapacitated facility location problem 62 2.7.2 Capacitated facility location problem 63 2.8 Uncertainty in location problems 64 2.8.1 Scenario-based modelling 67 2.8.2 Recourse actions 69 2.9 Practical application: Hub location for time-sensitive cargo deliveries 73 References and further reading 74 3: Transportation and service networks 76 3.1 Features of transportation networks 77 3.2 Common notation 79 3.3 Multi-commodity network flow and design 80 3.3.1 Single-commodity network design problem 80 3.3.2 Shortest path problems 81 3.3.2.1 Resource-constrained shortest path problem 82 3.3.2.2 Multi-objective shortest path problem 84 3.3.3 Multi-commodity network design problem 86 3.4 Service network design 91 3.4.1 Time-invariant formulation 94 3.4.2 Time–space network representation 97 3.5 Congestion in network design 101 3.5.1 Modelling delay 101 3.5.2 Network design with node congestion 102 3.6 Practical application: Intermodal rail network service design 107 References and further reading 111 4: Routing problems 112 4.1 Routing in freight distribution 112 4.1.1 Network topology 113 4.1.2 Timescales for planning and implementation 113 4.1.3 Customers 114 4.1.4 Time 115 4.1.5 Vehicles 116 4.1.6 Objectives 117 4.2 Travelling salesman problem 117 4.2.1 Asymmetric formulations 118 4.2.2 Subtours and subtour elimination for the ATSP 123 4.2.2.1 Cutset inequalities 123 4.2.2.2 Compact formulations 127 4.2.2.3 Compact node-ordering formulation 128 4.2.2.4 Compact arc-ordering or flow-based formulation 130 4.2.2.5 Compact precedence-based formulation 133 4.2.3 Symmetric formulations 136 4.3 Vehicle routing problem 139 4.3.1 Common notation 140 4.4 Capacitated vehicle routing 142 4.4.1 Two-index formulations 142 4.4.1.1 Cutset inequalities for tour feasibility 143 4.4.1.2 Compact inequalities based on node-ordering for tour feasibility 146 4.4.1.3 Compact inequalities based on arc-ordering for tour feasibility 146 4.4.2 Three-index formulations 147 4.4.3 Set partitioning formulations 149 4.5 Vehicle routing with time windows 152 4.5.1 Soft time windows 154 4.6 Distance-constrained vehicle routing 156 4.7 Uncertainty in vehicle routing problems 157 4.7.1 Recourse models 158 4.7.1.1 Vehicle routing problems with stochastic travel times 160 4.7.2 Chance-constrained models 165 4.8 Dynamic vehicle routing problems 167 4.9 Practical application: Charity collection 172 References and further reading 175 5: Integrated routing problems 176 5.1 Location-routing problem 177 5.1.1 Formal problem definition 179 5.1.2 Formulation based on flow 180 5.1.3 Formulation based on two commodities 181 5.2 Inventory-routing problem 183 5.2.1 Formal problem definition 186 5.2.2 Exponential-size formulation 187 5.2.3 Polynomial-size formulation 189 5.3 Production-routing problem 190 5.3.1 Formal problem definition 191 5.3.2 Mathematical modelling 191 References and further reading 192 6: Green freight distribution 194 6.1 Introduction 194 6.1.1 Emissions and pollution 194 6.1.2 Noise and vibration 196 6.1.3 Land and resource consumption 196 6.1.4 Toxic effects 196 6.2 Mitigating measures 196 6.3 Quantifying externalities 197 6.3.1 Fuel consumption models 198 6.3.1.1 Emission factor model 198 6.3.1.2 Average speed model 199 6.3.1.3 Instantaneous emissions model 202 6.4 Green freight distribution planning 204 6.4.1 Pollution-routing problems 205 6.4.1.1 Fleet mix, fuel consumption and emissions 207 6.4.2 Speed optimisation on fixed routes 213 6.5 Practical application: Speed optimisation in maritime shipping 215 References and further reading 218 7: Collaboration in freight distribution 220 7.1 Cooperative game theory 221 7.1.1 Core 221 7.1.2 Shapley value 228 7.1.3 Banzhaf index 230 7.2 Practical application: Cooperation among freight carriers 230 References and further reading 231 8: Methodology 232 8.1 General-purpose solvers 233 8.2 Exact solution techniques 235 8.2.1 Benders decomposition 236 8.2.2 Application to uncapacitated network design 238 8.2.2.1 Benders decomposition using an aggregated formulation 238 8.2.2.2 Benders decomposition using a stronger formulation 246 8.2.3 Lagrangean relaxation 253 8.2.4 Application to uncapacitated network design 256 8.2.4.1 Relaxing the arc constraints 257 8.2.4.2 Relaxing the flow constraints 261 8.3 Heuristic solution techniques 262 8.3.1 Constructive heuristics 265 8.3.2 Neighbourhoods 267 8.3.3 Evaluation function 268 8.3.4 Local search 268 8.3.5 Metaheuristics 270 8.3.5.1 Simulated annealing 271 8.3.5.2 Tabu search 272 8.3.5.3 Variable neighbourhood descent 272 8.3.5.4 Variable neighbourhood search 273 8.3.5.5 Large neighbourhood search 273 8.3.5.6 Adaptive large neighbourhood search 273 8.3.5.7 Iterated local search 274 8.3.5.8 Genetic algorithms 274 8.3.6 Matheuristics 274 References and further reading 275 References 276 Index 284