Abstract
Freight transportation is a highly competitive market, where logistics service providers (LSP) or carriers have to offer their customers highly reliable and high-quality services at low prices. To meet this challenge, LSPs have to standardize and consolidate. They consolidate their freight in a network of hubs and terminals and build up regular services. The design of such services requires decisions about the frequency, mode, and route of the service, and the corresponding schedule and routing of the freight. In some cases, they also need to make decisions about the assignment of crew and vehicles as well as the repositioning of empty containers and vehicles. Recent publications show that realistic instances of such planning problems are difficult to solve. Nevertheless, some of these real-life problems are modeled and solved using mathematical programming techniques. In this paper, we review different problem formulations published in literature. We further analyze and compare the specific solution frameworks. Based on this we give recommendations for future research.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Ahuja RK, Magnanti TL, Orlin JB (1993) Network flows: theory, algorithms, and applications. Prentice Hall, Englewood Cliffs
Armacost A, Barnhart C, Ware K (2002) Composite variable formulations for express shipment service network design. Transport Sci 36:1–20
Armacost A, Barnhart C, Ware K, Wilson A (2004) UPS optimizes its air network. Interfaces 34:15–25
Barnhart C, Schneur RR (1996) Air network design for express shipment service. Oper Res 44:852–864
Barnhart C, Krishnan N, Kim D, Ware K (2002) Network design for express shipment delivery. Comput Optim Appl 21:239–262
Büdenbender K, Grünnert T, Sebastian H-J (2000) A Hybrid Tabu Search/Branch-and-Bound for the Direct Network Design Problem. Transp Sci 34:364-380
Cheung RK, Muralidharan B (2000) Dynamic routing for priority shipment sin LTL service networks. Transp Sci 34:86–98
Cohn A (2002) Composite-Variable Modeling for Large-Scale Problems in Transportation and Logistics, Ph.D. Thesis, MIT
Cohn A, Barnhart C (2003) Improving crew scheduling by incorporating key maintenance routing decisions. Oper Res 51:387–396
Crainic TG (1999) Long-haul Freight Transportation. In: Hall RW (ed) Handbook of transportation science. Kluwer, Norwell, pp 451–516
Crainic TG (2000) Service network design in freight transportation. Eur J Oper Res 122:272–288
Crainic TG, Laporte G (1997) Planning models for freight transportation. Eur J Oper Res 97:409–438
Crainic TG, Roy J (1988) OR tools for tactical freight transportation planning. Eur J Oper Res 33:290–297
Dantzig GB, Wolfe P (1960) Decomposition principle for linear programs. Oper Res 8:101–111
Delmore L, Roy J, Rousseau J-M (1998) Motor-carriers operations planning models: A state of the art. In: Bianco L, LaBella A (eds) Freight transport planning and logistics. Springer, Berlin
Farvolden JM, Powell WB (1994) Subgradient methods for the service network design problem. Transp Sci 28:256–272
Farvolden JM, Powell WB, Lustig IJ (1993) A primal partitioning solution for the multicommodity network flow problem. Oper Res 41:669–693
Fleischmann B (2002) Systeme der Transportlogistik. In: Arnold D, Isermann H (eds) Handbuch Logistik. Springer, Berlin, pp A1-13–A1-19
Gabow H (1973) Implementation of algorithms for maximum matching on non-bipartite graphs. Ph.D. Thesis, Stanford University
Goldberg AV (1997) An efficient implementation of a scaling minimum-cost flow algorithm. J Algorithm 22:1–29
Grünnert T, Sebastian HJ (2000) Planning models for long-haul operations of postal and express shipment companies. Eur J Oper Res 122:289–309
Hane A, Barnhart C, Johnson EL, Marsten RE, Nemhauser GL, Sigismondi G (1995) The fleet assignment problem: solving a large-scale integer program. Math Program 70:211–232
Irnich S (2002) Netzwerk-Design fnr zweistufige Transportsysteme und ein Branch-and-Price Verfahren fnr das gemischte Direkt- und Hubflugproblem. Ph.D. thesis, RWTH Aachen
Jansen B, Swinkels PCJ, Teeuwen GJA, van Antwerpen de Fluiter B, Fleuren HA (2004) Operational planning of a large-scale multi-modal transportation system. Eur J Oper Res 156:41–53
Kim D (1997) Large scale transportation service network design: models, algorithms and applications. Ph.D. Thesis, MIT
Kim D, Barnhart C (1999) Transportation service network design: models and algorithms. In: Wilson NHM (ed) Computer-aided transit scheduling. Springer, Berlin, pp 259–283
Kim D, Barnhart C, Ware K, Reinhardt G (1999) Multimodal express package delivery: a service network design application. Transp Sci 33:391–407
Koskosidis IA, Powell WB (1992) Shipment routing algorithms with tree constraints. Transp Sci 26:230–245
Powell WB (1986) A local improvement heuristic for the design of less-than-truckload motor carrier networks. Transp Sci 20:246–257
Powell WB, Sheffi Y (1983) The load planning problem of motor carriers: problem description and proposed solution approach. Transp Sci 17:471–480
Powell WB, Sheffi Y (1989) Design and implementation of an interactive optimization system for network design in the motor carrier industry. Oper Res 37:12–29
Roy J, Crainic TG (1992) Improving intercity freight routing with a tactical planning model. Interfaces 22:31–44
Wlcek H (1998) Gestaltung der Güterverkehrsnetze von Sammelgutspeditionen. Gesellschaft fnr Verkehrsbetriebswirtschaft und Logistik e.V., Nnrnberg
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Wieberneit, N. Service network design for freight transportation: a review. OR Spectrum 30, 77–112 (2008). https://doi.org/10.1007/s00291-007-0079-2
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00291-007-0079-2