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Liner shipping hub network design in a competitive environment

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  • Gelareh, Shahin
  • Nickel, Stefan
  • Pisinger, David
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    Abstract

    A mixed integer programming formulation is proposed for hub-and-spoke network design in a competitive environment. It addresses the competition between a newcomer liner service provider and an existing dominating operator, both operating on hub-and-spoke networks. The newcomer company maximizes its market share--which depends on the service time and transportation cost--by locating a predefined number of hubs at candidate ports and designing its network. While general-purpose solvers do not solve instances of even small size, an accelerated Lagrangian method combined with a primal heuristic obtains promising bounds. Our computational experiments on real instances of practical size indicate superiority of our approach.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.

    Volume (Year): 46 (2010)
    Issue (Month): 6 (November)
    Pages: 991-1004

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    Handle: RePEc:eee:transe:v:46:y:2010:i:6:p:991-1004

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    Related research

    Keywords: Hub-and-spoke network design Liner shipping Competition Mixed integer programming Lagrangian relaxation Enumeration;

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    Cited by:
    1. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship fleet deployment with container transshipment operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 470-484.
    2. Wang, Shuaian & Meng, Qiang, 2012. "Sailing speed optimization for container ships in a liner shipping network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 701-714.
    3. Christiansen, Marielle & Fagerholt, Kjetil & Nygreen, Bjørn & Ronen, David, 2013. "Ship routing and scheduling in the new millennium," European Journal of Operational Research, Elsevier, vol. 228(3), pages 467-483.
    4. Gelareh, Shahin & Nickel, Stefan, 2011. "Hub location problems in transportation networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1092-1111.
    5. Wang, Shuaian, 2014. "A novel hybrid-link-based container routing model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 165-175.
    6. Wang, Shuaian & Meng, Qiang & Sun, Zhuo, 2013. "Container routing in liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 1-7.
    7. SteadieSeifi, M. & Dellaert, N.P. & Nuijten, W. & Van Woensel, T. & Raoufi, R., 2014. "Multimodal freight transportation planning: A literature review," European Journal of Operational Research, Elsevier, vol. 233(1), pages 1-15.
    8. Gelareh, Shahin & Pisinger, David, 2011. "Fleet deployment, network design and hub location of liner shipping companies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 947-964.
    9. Meng, Qiang & Wang, Tingsong & Wang, Shuaian, 2012. "Short-term liner ship fleet planning with container transshipment and uncertain container shipment demand," European Journal of Operational Research, Elsevier, vol. 223(1), pages 96-105.
    10. Zheng, Jianfeng & Meng, Qiang & Sun, Zhuo, 2014. "Impact analysis of maritime cabotage legislations on liner hub-and-spoke shipping network design," European Journal of Operational Research, Elsevier, vol. 234(3), pages 874-884.
    11. Wang, Shuaian & Meng, Qiang & Liu, Zhiyuan, 2013. "Bunker consumption optimization methods in shipping: A critical review and extensions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 53(C), pages 49-62.
    12. Liu, Zhiyuan & Meng, Qiang & Wang, Shuaian & Sun, Zhuo, 2014. "Global intermodal liner shipping network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 28-39.

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