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Direct versus terminal freight routing on a network with concave costs

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  • Hall, Randolph W.

Abstract

This paper develops a procedure for deciding whether to route a shipment through an intermediate transportation terminal or route it directly to its destination. The procedure applies to networks with many origins (e.g. 2000) and few destinations (e.g. 20, or vice versa), where each origin is served by exactly one terminal. This decision is difficult because of economies-to-scale in transportation, which cause the cost of routing a shipment through a terminal to depend on the routes chosen for other shipments. The optimization procedure developed here finds the optimal routes graphically with a one-dimensional search, and is sufficiently efficient to be programmed on a hand calculator or personal computer. The procedure also provides insights as to the sensitivity of the optimal solution to changes in model parameters.

Suggested Citation

  • Hall, Randolph W., 1987. "Direct versus terminal freight routing on a network with concave costs," Transportation Research Part B: Methodological, Elsevier, vol. 21(4), pages 287-298, August.
    • Handle: RePEc:eee:transb:v:21:y:1987:i:4:p:287-298
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    Citations

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    Cited by:

    1. G. Guastaroba & M. G. Speranza & D. Vigo, 2016. "Intermediate Facilities in Freight Transportation Planning: A Survey," Transportation Science, INFORMS, vol. 50(3), pages 763-789, August.
    2. Y Bouchery & Jan C Fransoo, 2015. "Cost, carbon emissions and modal shift in intermodal network design decisions," Post-Print hal-01954452, HAL.
    3. Bouchery, Yann & Fransoo, Jan, 2015. "Cost, carbon emissions and modal shift in intermodal network design decisions," International Journal of Production Economics, Elsevier, vol. 164(C), pages 388-399.
    4. Estrada-Romeu, Miquel & Robusté, Francesc, 2015. "Stopover and hub-and-spoke shipment strategies in less-than-truckload carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 76(C), pages 108-121.
    5. Aykin, Turgut, 1995. "The hub location and routing problem," European Journal of Operational Research, Elsevier, vol. 83(1), pages 200-219, May.
    6. O'Kelly, M. E. & Bryan, D. L., 1998. "Hub location with flow economies of scale," Transportation Research Part B: Methodological, Elsevier, vol. 32(8), pages 605-616, November.
    7. Janic, Milan, 2008. "An assessment of the performance of the European long intermodal freight trains (LIFTS)," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(10), pages 1326-1339, December.
    8. Jenn-Rong Lin & Linda Nozick & Mark Turnquist, 2006. "Strategic design of distribution systems with economies of scale in transportation," Annals of Operations Research, Springer, vol. 144(1), pages 161-180, April.
    9. Sarah Root & Amy Cohn, 2008. "A novel modeling approach for express package carrier planning," Naval Research Logistics (NRL), John Wiley & Sons, vol. 55(7), pages 670-683, October.
    10. Anna Franceschetti & Ola Jabali & Gilbert Laporte, 2017. "Continuous approximation models in freight distribution management," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(3), pages 413-433, October.
    11. Martina Jakara & Nikolina Brnjac, 2023. "Foliated Transport Networks in Intermodal Freight Transport," Sustainability, MDPI, vol. 15(9), pages 1-13, April.
    12. Langevin, André & Mbaraga, Pontien & Campbell, James F., 1996. "Continuous approximation models in freight distribution: An overview," Transportation Research Part B: Methodological, Elsevier, vol. 30(3), pages 163-188, June.

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