The multistage stochastic integer load planning problem

Cheng Chang Lin, Jeffery Sung Jan Lin

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

Time-definite freight delivery common carriers, who pickup, consolidate and deliver small shipments are a key third-party logistics service provider in the supply chains. Under uncertain demands, carrier's multistage stochastic integer load planning in the pure hub-and-spoke line-haul operations network is to determine multistage freight paths and distribute trailers over time while meeting operational restrictions, service requirements, and balancing trailer inventory at the termination of planning horizon. We developed a heuristic approach, scenario aggregation with embedded branching on the binary variables. The numerical experiments showed a proactive operations strategy with a lower operating cost than the conventionally deterministic approach.

Original languageEnglish
Pages (from-to)143-156
Number of pages14
JournalTransportation Research Part E: Logistics and Transportation Review
Volume43
Issue number2
DOIs
Publication statusPublished - 2007 Mar

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

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