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Discretization and Validation of the Continuum Approximation Scheme for Terminal System Design

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  • Yanfeng Ouyang

    (Institute of Transportation Studies and Department of Civil and Environmental Engineering, University of California, Berkeley, California 94720)

  • Carlos F. Daganzo

    (Institute of Transportation Studies and Department of Civil and Environmental Engineering, University of California, Berkeley, California 94720)

Abstract

This paper proposes an algorithm that automatically translates the “continuum approximation” (CA) recipes for location problems into discrete designs. It applies to terminal systems, but can also be used for other logistics problems. The study also systematically compares the logistics costs predicted by the CA approach with the actual costs for discrete designs obtained with the automated procedure. The predictions are quite accurate. The paper also gives conditions under which the discrete solution has a small optimality gap.

Suggested Citation

  • Yanfeng Ouyang & Carlos F. Daganzo, 2006. "Discretization and Validation of the Continuum Approximation Scheme for Terminal System Design," Transportation Science, INFORMS, vol. 40(1), pages 89-98, February.
    • Handle: RePEc:inm:ortrsc:v:40:y:2006:i:1:p:89-98
    DOI: 10.1287/trsc.1040.0110
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    References listed on IDEAS

    as
    1. G. F. Newell, 1971. "Dispatching Policies for a Transportation Route," Transportation Science, INFORMS, vol. 5(1), pages 91-105, February.
    2. Carlos F. Daganzo, 1984. "The Distance Traveled to Visit N Points with a Maximum of C Stops per Vehicle: An Analytic Model and an Application," Transportation Science, INFORMS, vol. 18(4), pages 331-350, November.
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