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A time-expanded network reduction matheuristic for the logistics service network design problem

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  • Belieres, Simon
  • Hewitt, Mike
  • Jozefowiez, Nicolas
  • Semet, Frédéric

Abstract

Planning cost-effective logistics operations involve the integration of multiple decision-making levels. In the domain of supply chain management, the last decades have seen the emergence of 3PL service providers that specialize in integrating warehousing and transportation services. In this paper, we study the operations performed by a 3PL service provider in the supply chain management of a French restaurant chain. The transportation planning process is assisted by solving the Logistics Service Network Design Problem (LSNDP). As realistic instances are too large for on-the-shelf optimization solvers to solve in acceptable run-times, we develop a network reduction heuristic inspired by the recent Dynamic Discretization Discovery algorithm. Through an extensive series of experiments carried out on instances based on the operations of an industrial partner, we demonstrate the efficiency of the proposed approach. We also investigate the impact of the distribution strategy used in practice to determine the transportation plan and how this distribution strategy can be modified to reduce the overall logistics costs.

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  • Belieres, Simon & Hewitt, Mike & Jozefowiez, Nicolas & Semet, Frédéric, 2021. "A time-expanded network reduction matheuristic for the logistics service network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:transe:v:147:y:2021:i:c:s1366554520308450
    DOI: 10.1016/j.tre.2020.102203
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    2. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
    3. Liu, Chuanju & Zhang, Junlong & Lin, Shaochong & Shen, Zuo-Jun Max, 2023. "Service network design with consistent multiple trips," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    4. Lu, Jiawei & Nie, Qinghui & Mahmoudi, Monirehalsadat & Ou, Jishun & Li, Chongnan & Zhou, Xuesong Simon, 2022. "Rich arc routing problem in city logistics: Models and solution algorithms using a fluid queue-based time-dependent travel time representation," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 143-182.
    5. Wang, Xinxin & Xu, Zeshui & Qin, Yong & Skare, Marinko, 2021. "Service networks for sustainable business: A dynamic evolution analysis over half a century," Journal of Business Research, Elsevier, vol. 136(C), pages 543-557.
    6. Belieres, Simon & Hewitt, Mike & Jozefowiez, Nicolas & Semet, Frédéric, 2022. "Meta partial benders decomposition for the logistics service network design problem," European Journal of Operational Research, Elsevier, vol. 300(2), pages 473-489.

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