Abstract
Hub-based relay networks for long haul trucking offer an opportunity to improve the work–life balance of drivers while simultaneously supporting faster delivery through near-continuous flow of containers from source to destination. In this paper, we develop a model for deciding hub location and sizing along with the routing of loads. Costs of hub construction and operation, transportation and penalties for multi-day driver trips are included. Both deterministic and two-stage stochastic programming models have been formulated in this paper. The goal is to determine the optimal hub and route decisions so that overall cost is minimised. A case study on the highway network for the Western United States demonstrates the computational tractability of the approach along with the importance of considering demand uncertainty.
Original language | English (US) |
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Pages (from-to) | 6130-6145 |
Number of pages | 16 |
Journal | International Journal of Production Research |
Volume | 57 |
Issue number | 19 |
DOIs | |
State | Published - Oct 2 2019 |
Keywords
- network design
- physical internet
- stochastic programming
- truckload shipments
- valid inequalities
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering