Dealing with demand uncertainty in service network and load plan design

Ahmad Baubaid*, Natashia Boland, Martin Savelsbergh

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations

Abstract

Less-than-Truckload (LTL) transportation carriers plan for their next operating season by deciding: (1) a load plan, which specifies how shipments are routed through the terminal network from origins to destinations, and (2) how many trailers to operate between each pair of terminals in the network. Most carriers also require that the load plan is such that shipments at an intermediate terminal and having the same ultimate destination are loaded onto trailers headed to a unique next terminal regardless of their origins. In practice, daily variations in demand are handled by relaxing this requirement and possibly loading shipments to an alternative next terminal. We introduce the p-alt model, which integrates routing and capacity decisions, and which allows p choices for the next terminal for shipments with a particular ultimate destination. We further introduce and computationally test three solution methods for the stochastic p-alt model, which shows that much can be gained from using the p-alt model and explicitly considering demand uncertainty.

Original languageEnglish
Title of host publicationIntegration of Constraint Programming, Artificial Intelligence, and Operations Research - 15th International Conference, CPAIOR 2018, Proceedings
EditorsWillem -Jan van Hoeve
PublisherSpringer Verlag
Pages63-71
Number of pages9
ISBN (Print)9783319930305
DOIs
StatePublished - 2018

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume10848 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Bibliographical note

Publisher Copyright:
© Springer International Publishing AG, part of Springer Nature 2018.

ASJC Scopus subject areas

  • Theoretical Computer Science
  • General Computer Science

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