IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v50y2016i3p763-789.html
   My bibliography  Save this article

Intermediate Facilities in Freight Transportation Planning: A Survey

Author

Listed:
  • G. Guastaroba

    (Department of Economics and Management, University of Brescia, 25121 Brescia, Italy)

  • M. G. Speranza

    (Department of Economics and Management, University of Brescia, 25121 Brescia, Italy)

  • D. Vigo

    (Department of Electrical, Electronic, and Information Engineering, University of Bologna, 40136 Bologna, Italy)

Abstract

Consolidation of freight and merging operations are essential for transportation companies to reduce costs and improve the level of service provided to customers. Such operations take place in intermediate facilities or terminals located between the origins and the destinations of freight. This survey reviews the main contributions from the operations research literature on freight transportation planning problems where the presence of intermediate facilities has a strong impact on the cost of the system and on how goods are delivered. In particular, we focus on the tactical planning issues arising in this context. We have identified three classes of problems with intermediate facilities: vehicle routing problems, transshipment problems, and service network design problems. For each class of problems we provide an overview of the main problem variants, survey the methods used for their solution, and indicate open research directions.

Suggested Citation

  • 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.
    • Handle: RePEc:inm:ortrsc:v:50:y:2016:i:3:p:763-789
    DOI: 10.1287/trsc.2015.0631
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.2015.0631
    Download Restriction: no
    File URL: https://libkey.io/10.1287/trsc.2015.0631?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Van Belle, Jan & Valckenaers, Paul & Cattrysse, Dirk, 2012. "Cross-docking: State of the art," Omega, Elsevier, vol. 40(6), pages 827-846.
    3. G. Clarke & J. W. Wright, 1964. "Scheduling of Vehicles from a Central Depot to a Number of Delivery Points," Operations Research, INFORMS, vol. 12(4), pages 568-581, August.
    4. Cynthia Barnhart & Rina R. Schneur, 1996. "Air Network Design for Express Shipment Service," Operations Research, INFORMS, vol. 44(6), pages 852-863, December.
    5. Ali, Agha Iqbal & O'Connor, Debra J., 2010. "The impact of distribution system characteristics on computational tractability," European Journal of Operational Research, Elsevier, vol. 200(2), pages 323-333, January.
    6. Alex Orden, 1956. "The Transhipment Problem," Management Science, INFORMS, vol. 2(3), pages 276-285, April.
    7. Lin, Cheng-Chang & Chen, Sheu-Hua, 2008. "An integral constrained generalized hub-and-spoke network design problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(6), pages 986-1003, November.
    8. Oded Berman & Qian Wang, 2006. "Inbound Logistic Planning: Minimizing Transportation and Inventory Cost," Transportation Science, INFORMS, vol. 40(3), pages 287-299, August.
    9. Ma, Hong & Miao, Zhaowei & Lim, Andrew & Rodrigues, Brian, 2011. "Crossdocking distribution networks with setup cost and time window constraint," Omega, Elsevier, vol. 39(1), pages 64-72, January.
    10. Mads Jepsen & Simon Spoorendonk & Stefan Ropke, 2013. "A Branch-and-Cut Algorithm for the Symmetric Two-Echelon Capacitated Vehicle Routing Problem," Transportation Science, INFORMS, vol. 47(1), pages 23-37, February.
    11. C-C Lin & Y-C Wu, 2001. "The multiple frequency delivery operations in the time-definite delivery industry," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 52(11), pages 1215-1224, November.
    12. Boysen, Nils & Fliedner, Malte, 2010. "Cross dock scheduling: Classification, literature review and research agenda," Omega, Elsevier, vol. 38(6), pages 413-422, December.
    13. Lin, Cheng-Chang & Lin, Jeffery Sung-Jan, 2007. "The multistage stochastic integer load planning problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(2), pages 143-156, March.
    14. Lin, Cheng-Chang & Chen, Sheu-Hua, 2004. "The hierarchical network design problem for time-definite express common carriers," Transportation Research Part B: Methodological, Elsevier, vol. 38(3), pages 271-283, March.
    15. Gerardo Berbeglia & Jean-François Cordeau & Irina Gribkovskaia & Gilbert Laporte, 2007. "Static pickup and delivery problems: a classification scheme and survey," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 15(1), pages 1-31, July.
    16. Andrew P. Armacost & Cynthia Barnhart & Keith A. Ware, 2002. "Composite Variable Formulations for Express Shipment Service Network Design," Transportation Science, INFORMS, vol. 36(1), pages 1-20, February.
    17. Janny M. Y. Leung & Thomas L. Magnanti & Vijay Singhal, 1990. "Routing in Point-to-Point Delivery Systems: Formulations and Solution Heuristics," Transportation Science, INFORMS, vol. 24(4), pages 245-260, November.
    18. Berbeglia, Gerardo & Cordeau, Jean-François & Laporte, Gilbert, 2010. "Dynamic pickup and delivery problems," European Journal of Operational Research, Elsevier, vol. 202(1), pages 8-15, April.
    19. Halit Üster & Homarjun Agrahari, 2010. "An integrated load-planning problem with intermediate consolidated truckload assignments," IISE Transactions, Taylor & Francis Journals, vol. 42(7), pages 490-513.
    20. Liu, Jiyin & Li, Chung-Lun & Chan, Chun-Yan, 2003. "Mixed truck delivery systems with both hub-and-spoke and direct shipment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(4), pages 325-339, July.
    21. Roberto Baldacci & Aristide Mingozzi & Roberto Roberti & Roberto Wolfler Calvo, 2013. "An Exact Algorithm for the Two-Echelon Capacitated Vehicle Routing Problem," Operations Research, INFORMS, vol. 61(2), pages 298-314, April.
    22. M Wen & J Larsen & J Clausen & J-F Cordeau & G Laporte, 2009. "Vehicle routing with cross-docking," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(12), pages 1708-1718, December.
    23. Gerardo Berbeglia & Jean-François Cordeau & Irina Gribkovskaia & Gilbert Laporte, 2007. "Rejoinder on: Static pickup and delivery problems: a classification scheme and survey," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 15(1), pages 45-47, July.
    24. Lin, Cheng-Chang & Lin, Yu-Jen & Lin, Dung-Ying, 2003. "The economic effects of center-to-center directs on hub-and-spoke networks for air express common carriers," Journal of Air Transport Management, Elsevier, vol. 9(4), pages 255-265.
    25. Zhaowei Miao & Feng Yang & Ke Fu & Dongsheng Xu, 2012. "Transshipment service through crossdocks with both soft and hard time windows," Annals of Operations Research, Springer, vol. 192(1), pages 21-47, January.
    26. Keely L. Croxton & Bernard Gendron & Thomas L. Magnanti, 2003. "Models and Methods for Merge-in-Transit Operations," Transportation Science, INFORMS, vol. 37(1), pages 1-22, February.
    27. Sophie D. Lapierre & Angel B. Ruiz & Patrick Soriano, 2004. "Designing Distribution Networks: Formulations and Solution Heuristic," Transportation Science, INFORMS, vol. 38(2), pages 174-187, May.
    28. Bahar Y. Kara & Mehmet R. Taner, 2011. "Hub Location Problems: The Location of Interacting Facilities," International Series in Operations Research & Management Science, in: H. A. Eiselt & Vladimir Marianov (ed.), Foundations of Location Analysis, chapter 0, pages 273-288, Springer.
    29. Andrew P. Armacost & Cynthia Barnhart & Keith A. Ware & Alysia M. Wilson, 2004. "UPS Optimizes Its Air Network," Interfaces, INFORMS, vol. 34(1), pages 15-25, February.
    30. 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.
    31. Raymond K. Cheung & B. Muralidharan, 2000. "Dynamic Routing for Priority Shipments in LTL Service Networks," Transportation Science, INFORMS, vol. 34(1), pages 86-98, February.
    32. Haiqing Song & Vernon N. Hsu & Raymond K. Cheung, 2008. "Distribution Coordination Between Suppliers and Customers with a Consolidation Center," Operations Research, INFORMS, vol. 56(5), pages 1264-1277, October.
    33. Fernando Afonso Santos & Geraldo Robson Mateus & Alexandre Salles da Cunha, 2015. "A Branch-and-Cut-and-Price Algorithm for the Two-Echelon Capacitated Vehicle Routing Problem," Transportation Science, INFORMS, vol. 49(2), pages 355-368, May.
    34. 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.
    35. Billy E. Gillett & Leland R. Miller, 1974. "A Heuristic Algorithm for the Vehicle-Dispatch Problem," Operations Research, INFORMS, vol. 22(2), pages 340-349, April.
    36. 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.
    37. Guido Perboli & Roberto Tadei & Daniele Vigo, 2011. "The Two-Echelon Capacitated Vehicle Routing Problem: Models and Math-Based Heuristics," Transportation Science, INFORMS, vol. 45(3), pages 364-380, August.
    38. 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.
    39. Lin, Cheng-Chang, 2001. "The freight routing problem of time-definite freight delivery common carriers," Transportation Research Part B: Methodological, Elsevier, vol. 35(6), pages 525-547, July.
    40. Ivan Contreras, 2015. "Hub Location Problems," Springer Books, in: Gilbert Laporte & Stefan Nickel & Francisco Saldanha da Gama (ed.), Location Science, edition 127, chapter 0, pages 311-344, Springer.
    41. Teodor Gabriel Crainic & Nicoletta Ricciardi & Giovanni Storchi, 2009. "Models for Evaluating and Planning City Logistics Systems," Transportation Science, INFORMS, vol. 43(4), pages 432-454, November.
    42. Zapfel, Gunther & Wasner, Michael, 2002. "Planning and optimization of hub-and-spoke transportation networks of cooperative third-party logistics providers," International Journal of Production Economics, Elsevier, vol. 78(2), pages 207-220, July.
    43. Prodhon, Caroline & Prins, Christian, 2014. "A survey of recent research on location-routing problems," European Journal of Operational Research, Elsevier, vol. 238(1), pages 1-17.
    44. Andrew Lim & Zhaowei Miao & Brian Rodrigues & Zhou Xu, 2005. "Transshipment through crossdocks with inventory and time windows," Naval Research Logistics (NRL), John Wiley & Sons, vol. 52(8), pages 724-733, December.
    45. Warren B. Powell & Yosef Sheffi, 1989. "OR Practice—Design and Implementation of an Interactive Optimization System for Network Design in the Motor Carrier Industry," Operations Research, INFORMS, vol. 37(1), pages 12-29, February.
    46. Crainic, Teodor Gabriel, 2000. "Service network design in freight transportation," European Journal of Operational Research, Elsevier, vol. 122(2), pages 272-288, April.
    47. R.K. Cheung & B. Muralidharan, 1999. "Impact of dynamic decision making on hub‐and‐spoke freight transportationnetworks," Annals of Operations Research, Springer, vol. 87(0), pages 49-71, April.
    48. 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.
    49. James F. Campbell & Morton E. O'Kelly, 2012. "Twenty-Five Years of Hub Location Research," Transportation Science, INFORMS, vol. 46(2), pages 153-169, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meuffels, W.J.M., 2015. "The design of road and air networks for express service providers," Other publications TiSEM d3266cb8-bc55-41be-adc7-4, Tilburg University, School of Economics and Management.
    2. 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.
    3. Buijs, Paul & Vis, Iris F.A. & Carlo, Héctor J., 2014. "Synchronization in cross-docking networks: A research classification and framework," European Journal of Operational Research, Elsevier, vol. 239(3), pages 593-608.
    4. C. Y. Lam, 2021. "Optimizing logistics routings in a network perspective of supply and demand nodes," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 29(1), pages 357-377, March.
    5. Zhu, Stuart X. & Ursavas, Evrim, 2018. "Design and analysis of a satellite network with direct delivery in the pharmaceutical industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 190-207.
    6. Archetti, Claudia & Peirano, Lorenzo, 2020. "Air intermodal freight transportation: The freight forwarder service problem," Omega, Elsevier, vol. 94(C).
    7. Jie, Wanchen & Yang, Jun & Zhang, Min & Huang, Yongxi, 2019. "The two-echelon capacitated electric vehicle routing problem with battery swapping stations: Formulation and efficient methodology," European Journal of Operational Research, Elsevier, vol. 272(3), pages 879-904.
    8. 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.
    9. Sara Martins & Pedro Amorim & Bernardo Almada-Lobo, 2018. "Delivery mode planning for distribution to brick-and-mortar retail stores: discussion and literature review," Flexible Services and Manufacturing Journal, Springer, vol. 30(4), pages 785-812, December.
    10. Adria Soriano & Margaretha Gansterer & Richard F. Hartl, 2018. "The two-region multi-depot pickup and delivery problem," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(4), pages 1077-1108, October.
    11. Meuffels, W.J.M. & Fleuren, H.A. & Cruijssen, F. & van Dam, E.R., 2009. "Enriching the Tactical Network Design of Express Service Carriers with Fleet Scheduling Characteristics," Other publications TiSEM e146d914-9638-4ae0-9587-b, Tilburg University, School of Economics and Management.
    12. Yıldız, Barış & Savelsbergh, Martin, 2022. "Optimizing package express operations in China," European Journal of Operational Research, Elsevier, vol. 300(1), pages 320-335.
    13. 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.
    14. Martina Jakara & Nikolina Brnjac, 2023. "Foliated Transport Networks in Intermodal Freight Transport," Sustainability, MDPI, vol. 15(9), pages 1-13, April.
    15. Haiqing Song & Vernon N. Hsu & Raymond K. Cheung, 2008. "Distribution Coordination Between Suppliers and Customers with a Consolidation Center," Operations Research, INFORMS, vol. 56(5), pages 1264-1277, October.
    16. Omar Ben-Ayed, 2012. "Redesigning the inter-facility network of a parcel distribution company in a developing country," International Journal of Services, Economics and Management, Inderscience Enterprises Ltd, vol. 4(1), pages 27-42.
    17. 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.
    18. Quesada Pérez, José Miguel & Lange, Jean-Charles & Tancrez, Jean-Sébastien, 2018. "A multi-hub Express Shipment Service Network Design model with flexible hub assignment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 116-131.
    19. 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.
    20. Li, Hongqi & Zhang, Lu & Lv, Tan & Chang, Xinyu, 2016. "The two-echelon time-constrained vehicle routing problem in linehaul-delivery systems," Transportation Research Part B: Methodological, Elsevier, vol. 94(C), pages 169-188.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ortrsc:v:50:y:2016:i:3:p:763-789. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.