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Locating transportation terminals to serve an expanding demand

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  • Campbell, James F.

Abstract

This paper develops a continuous approximation model of a general freight carrier serving a fixed region with an increasing density of demand. Terminal, transportation and relocation costs are considered. As the demand for service by a freight carrier increases, transportation terminals are added to decrease transportation costs. The vehicle routing scheme includes economies of scale for linehaul transportation between terminals. Although the optimal strategy for adding and locating terminals may require knowledge of future demand, myopic strategies may be nearly optimal. Three strategies are considered that provide upper and lower bounds on the distribution cost from the optimal strategy. Terminal locations are found for each strategy. A myopic strategy with limited capability for relocation is shown to be nearly optimal unless terminal relocation costs are large.

Suggested Citation

  • Campbell, James F., 1990. "Locating transportation terminals to serve an expanding demand," Transportation Research Part B: Methodological, Elsevier, vol. 24(3), pages 173-192, June.
    • Handle: RePEc:eee:transb:v:24:y:1990:i:3:p:173-192
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    Cited by:

    1. Masaeli, Mobina & Alumur, Sibel A. & Bookbinder, James H., 2018. "Shipment scheduling in hub location problems," Transportation Research Part B: Methodological, Elsevier, vol. 115(C), pages 126-142.
    2. Owen, Susan Hesse & Daskin, Mark S., 1998. "Strategic facility location: A review," European Journal of Operational Research, Elsevier, vol. 111(3), pages 423-447, December.
    3. Ivan Contreras & Jean-François Cordeau & Gilbert Laporte, 2011. "The Dynamic Uncapacitated Hub Location Problem," Transportation Science, INFORMS, vol. 45(1), pages 18-32, February.
    4. Vidal, Thibaut & Laporte, Gilbert & Matl, Piotr, 2020. "A concise guide to existing and emerging vehicle routing problem variants," European Journal of Operational Research, Elsevier, vol. 286(2), pages 401-416.
    5. Xin Wang & Michael K. Lim & Yanfeng Ouyang, 2017. "A Continuum Approximation Approach to the Dynamic Facility Location Problem in a Growing Market," Transportation Science, INFORMS, vol. 51(1), pages 343-357, February.
    6. Ansari, Sina & Başdere, Mehmet & Li, Xiaopeng & Ouyang, Yanfeng & Smilowitz, Karen, 2018. "Advancements in continuous approximation models for logistics and transportation systems: 1996–2016," Transportation Research Part B: Methodological, Elsevier, vol. 107(C), pages 229-252.
    7. Rahimeh Neamatian Monemi & Shahin Gelareh & Anass Nagih & Dylan Jones, 2021. "Bi-objective load balancing multiple allocation hub location: a compromise programming approach," Annals of Operations Research, Springer, vol. 296(1), pages 363-406, January.
    8. Makoto Okumura & Makoto Tsukai, 2003. "Distribution Network Configuration Considering Inventory Cost," ERSA conference papers ersa03p343, European Regional Science Association.
    9. Campbell, James F., 2013. "A continuous approximation model for time definite many-to-many transportation," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 100-112.
    10. Reza Farahani & Zvi Drezner & Nasrin Asgari, 2009. "Single facility location and relocation problem with time dependent weights and discrete planning horizon," Annals of Operations Research, Springer, vol. 167(1), pages 353-368, March.
    11. Correia, Isabel & Nickel, Stefan & Saldanha-da-Gama, Francisco, 2018. "A stochastic multi-period capacitated multiple allocation hub location problem: Formulation and inequalities," Omega, Elsevier, vol. 74(C), pages 122-134.
    12. David Canca & Belén Navarro-Carmona & José Luis Andrade-Pineda, 2022. "Design and Assessment of an Urban Circular Combined Truck–Drone Delivery System Using Continuum Approximation Models and Integer Programming," Sustainability, MDPI, vol. 14(20), pages 1-30, October.
    13. Mohammad Marufuzzaman & Sandra Duni Ekşioğlu, 2017. "Designing a Reliable and Dynamic Multimodal Transportation Network for Biofuel Supply Chains," Transportation Science, INFORMS, vol. 51(2), pages 494-517, May.
    14. Alumur, Sibel & Kara, Bahar Y., 2008. "Network hub location problems: The state of the art," European Journal of Operational Research, Elsevier, vol. 190(1), pages 1-21, October.
    15. J. F. Campbell & A. T. Ernst & M. Krishnamoorthy, 2005. "Hub Arc Location Problems: Part I---Introduction and Results," Management Science, INFORMS, vol. 51(10), pages 1540-1555, October.
    16. Current, John & Ratick, Samuel & ReVelle, Charles, 1998. "Dynamic facility location when the total number of facilities is uncertain: A decision analysis approach," European Journal of Operational Research, Elsevier, vol. 110(3), pages 597-609, November.
    17. Shahzad Bhatti & Michael Lim & Ho-Yin Mak, 2015. "Alternative fuel station location model with demand learning," Annals of Operations Research, Springer, vol. 230(1), pages 105-127, July.
    18. Mehmet R. Taner & Bahar Y. Kara, 2016. "Endogenous Effects of Hubbing on Flow Intensities," Networks and Spatial Economics, Springer, vol. 16(4), pages 1151-1181, December.
    19. Gelareh, Shahin & Neamatian Monemi, Rahimeh & Nickel, Stefan, 2015. "Multi-period hub location problems in transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 67-94.
    20. Sibel A. Alumur & Stefan Nickel & Francisco Saldanha-da-Gama & Yusuf Seçerdin, 2016. "Multi-period hub network design problems with modular capacities," Annals of Operations Research, Springer, vol. 246(1), pages 289-312, November.
    21. Neamatian Monemi, Rahimeh & Gelareh, Shahin & Nagih, Anass & Maculan, Nelson & Danach, Kassem, 2021. "Multi-period hub location problem with serial demands: A case study of humanitarian aids distribution in Lebanon," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    22. 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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