Hierarchical parcel distribution facility ground network design problem. (2nd November 2010)

• Record Type: Journal Article
• Authors: Ben-Ayed, Omar
• Is Part Of: International journal of logistics, economics and globalisation. Volume 2:Number 3(2010)
• Page Start: 250
• Page End: 269
• Publication Date: 2010-11-02
• Subjects: 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; Logistics -- Periodicals; Logistics -- Economic aspects -- Periodicals; Globalization -- Periodicals; 658.505
• Languages: English
• ISSNs: 1741-5373

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.