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A Local Improvement Heuristic for the Design of Less-than-Truckload Motor Carrier Networks

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  • Warren B. Powell

    (Princeton University, Princeton, New Jersey 08544)

Abstract

The load planning problem for less-than-truckload motor carriers is formulated as a fixed charge network design problem where level of service constraints are represented heuristically through a set of minimum frequencies on links. If direct service is offered between two terminals, it is required to do so at a given minimum frequency, implying not only a fixed charge from adding direct service but also a link cost function that is then flat until the flow on the link exceeds the minimum frequency. A local improvement heuristic is proposed which adds and drops links to and from the network in an intelligent sequence. After each change, the routing of the freight over the network is approximately reoptimized. Empty balancing of equipment is also handled explicitly. The approach has been applied successfully to a network with over 300 terminals; numerical tests on a 140 terminal network are reported.

Suggested Citation

  • Warren B. Powell, 1986. "A Local Improvement Heuristic for the Design of Less-than-Truckload Motor Carrier Networks," Transportation Science, INFORMS, vol. 20(4), pages 246-257, November.
    • Handle: RePEc:inm:ortrsc:v:20:y:1986:i:4:p:246-257
    DOI: 10.1287/trsc.20.4.246
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    Cited by:

    1. Teodor Gabriel Crainic & Mike Hewitt & Michel Toulouse & Duc Minh Vu, 2018. "Scheduled service network design with resource acquisition and management," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 7(3), pages 277-309, September.
    2. 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.
    3. Alan Erera & Michael Hewitt & Martin Savelsbergh & Yang Zhang, 2013. "Improved Load Plan Design Through Integer Programming Based Local Search," Transportation Science, INFORMS, vol. 47(3), pages 412-427, August.
    4. Dayarian, Iman & Rocco, Adolfo & Erera, Alan & Savelsbergh, Martin, 2022. "Operations design for high-velocity intra-city package service," Transportation Research Part B: Methodological, Elsevier, vol. 161(C), pages 150-168.
    5. Arnt-Gunnar Lium & Teodor Gabriel Crainic & Stein W. Wallace, 2009. "A Study of Demand Stochasticity in Service Network Design," Transportation Science, INFORMS, vol. 43(2), pages 144-157, May.
    6. Teodor Gabriel Crainic & Michel Gendreau & Judith M. Farvolden, 2000. "A Simplex-Based Tabu Search Method for Capacitated Network Design," INFORMS Journal on Computing, INFORMS, vol. 12(3), pages 223-236, August.
    7. Hewitt, Mike & Crainic, Teodor Gabriel & Nowak, Maciek & Rei, Walter, 2019. "Scheduled service network design with resource acquisition and management under uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 128(C), pages 324-343.
    8. Anne Lange & Werner Delfmann, 2017. "Network concentration indices for less-than-truckload transportation," Transportation, Springer, vol. 44(6), pages 1475-1497, November.
    9. Dall'Orto, Leonardo Campo & Crainic, Teodor Gabriel & Leal, Jose Eugenio & Powell, Warren B., 2006. "The single-node dynamic service scheduling and dispatching problem," European Journal of Operational Research, Elsevier, vol. 170(1), pages 1-23, April.
    10. Bai, Ruibin & Wallace, Stein W. & Li, Jingpeng & Chong, Alain Yee-Loong, 2014. "Stochastic service network design with rerouting," Transportation Research Part B: Methodological, Elsevier, vol. 60(C), pages 50-65.
    11. Tamvada, Srinivas Subramanya & Mansouri, Bahareh & Hassini, Elkafi & Pribytkov, Theodore, 2021. "An integer programming model and directed Steiner-forest based heuristic for routing less-than-truckload freight," International Journal of Production Economics, Elsevier, vol. 232(C).
    12. Crainic, Teodor Gabriel, 2000. "Service network design in freight transportation," European Journal of Operational Research, Elsevier, vol. 122(2), pages 272-288, April.
    13. C S Sung & S H Song, 2003. "Integrated service network design for a cross-docking supply chain network," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 54(12), pages 1283-1295, December.
    14. Daeki Kim & Cynthia Barnhart & Keith Ware & Gregory Reinhardt, 1999. "Multimodal Express Package Delivery: A Service Network Design Application," Transportation Science, INFORMS, vol. 33(4), pages 391-407, November.
    15. Barcos, Lucía & Rodríguez, Victoria M. & Álvarez, María Jesús & Robusté, Francesc, 2004. "Routing design for less-than-truckload motor carriers using ant colony techniques," DEE - Working Papers. Business Economics. WB wb043814, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    16. Mike Hewitt, 2019. "Enhanced Dynamic Discretization Discovery for the Continuous Time Load Plan Design Problem," Transportation Science, INFORMS, vol. 53(6), pages 1731-1750, November.
    17. C S Sung & W Yang, 2008. "An exact algorithm for a cross-docking supply chain network design problem," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(1), pages 119-136, January.
    18. Michael Berliner Pedersen & Teodor Gabriel Crainic & Oli B. G. Madsen, 2009. "Models and Tabu Search Metaheuristics for Service Network Design with Asset-Balance Requirements," Transportation Science, INFORMS, vol. 43(2), pages 158-177, May.
    19. Ahmad Baubaid & Natashia Boland & Martin Savelsbergh, 2021. "The Value of Limited Flexibility in Service Network Designs," Transportation Science, INFORMS, vol. 55(1), pages 52-74, 1-2.
    20. Ahmad I. Jarrah & Ellis Johnson & Lucas C. Neubert, 2009. "Large-Scale, Less-than-Truckload Service Network Design," Operations Research, INFORMS, vol. 57(3), pages 609-625, June.
    21. Xin Wang & Teodor Gabriel Crainic & Stein W. Wallace, 2019. "Stochastic Network Design for Planning Scheduled Transportation Services: The Value of Deterministic Solutions," INFORMS Journal on Computing, INFORMS, vol. 31(1), pages 153-170, February.
    22. Greening, Lacy M. & Dahan, Mathieu & Erera, Alan L., 2023. "Lead-Time-Constrained Middle-Mile Consolidation Network Design with Fixed Origins and Destinations," Transportation Research Part B: Methodological, Elsevier, vol. 174(C).
    23. Ilfat Ghamlouche & Teodor Gabriel Crainic & Michel Gendreau, 2003. "Cycle-Based Neighbourhoods for Fixed-Charge Capacitated Multicommodity Network Design," Operations Research, INFORMS, vol. 51(4), pages 655-667, August.

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