Stochastic service network design with rerouting

Service network design under uncertainty is fundamentally crucial for all freight transportation companies. The main challenge is to strike a balance between two conflicting objectives: low network setup costs and low expected operational costs. Together these have a significant impact on the qualit...

Full description

Bibliographic Details
Main Authors: Bai, Ruibin, Wallace, Stein W., Li, Jingpeng, Chong, Alain Yee-Loong
Format: Article
Published: Elsevier 2014
Subjects:
Online Access:https://eprints.nottingham.ac.uk/49413/
_version_ 1848797990761791488
author Bai, Ruibin
Wallace, Stein W.
Li, Jingpeng
Chong, Alain Yee-Loong
author_facet Bai, Ruibin
Wallace, Stein W.
Li, Jingpeng
Chong, Alain Yee-Loong
author_sort Bai, Ruibin
building Nottingham Research Data Repository
collection Online Access
description Service network design under uncertainty is fundamentally crucial for all freight transportation companies. The main challenge is to strike a balance between two conflicting objectives: low network setup costs and low expected operational costs. Together these have a significant impact on the quality of freight services. Increasing redundancy at crucial network links is a common way to improve network flexibility. However, in a highly uncertain environment, a single predefined network is unlikely to suit all possible future scenarios, unless it is prohibitively costly. Hence, rescheduling is often an effective alternative. In this paper, we proposed a new stochastic freight service network design model with vehicle rerouting options. The pro- posed model explicitly introduces a set of integer variables for vehicle rerouting in the second stage of the stochastic program. Although computationally more expensive, the resultant model provides more options (i.e. rerouting) and flexibility for planners to deal with uncertainties more effectively. The new model was tested on a set of instances adapted from the literature and its performance and characteristics are studied through both comparative studies and detailed analyses at the solution structure level. Implications for practical applications are discussed and further research directions are also provided.
first_indexed 2025-11-14T20:12:39Z
format Article
id nottingham-49413
institution University of Nottingham Malaysia Campus
institution_category Local University
last_indexed 2025-11-14T20:12:39Z
publishDate 2014
publisher Elsevier
recordtype eprints
repository_type Digital Repository
spelling nottingham-494132020-05-04T16:42:37Z https://eprints.nottingham.ac.uk/49413/ Stochastic service network design with rerouting Bai, Ruibin Wallace, Stein W. Li, Jingpeng Chong, Alain Yee-Loong Service network design under uncertainty is fundamentally crucial for all freight transportation companies. The main challenge is to strike a balance between two conflicting objectives: low network setup costs and low expected operational costs. Together these have a significant impact on the quality of freight services. Increasing redundancy at crucial network links is a common way to improve network flexibility. However, in a highly uncertain environment, a single predefined network is unlikely to suit all possible future scenarios, unless it is prohibitively costly. Hence, rescheduling is often an effective alternative. In this paper, we proposed a new stochastic freight service network design model with vehicle rerouting options. The pro- posed model explicitly introduces a set of integer variables for vehicle rerouting in the second stage of the stochastic program. Although computationally more expensive, the resultant model provides more options (i.e. rerouting) and flexibility for planners to deal with uncertainties more effectively. The new model was tested on a set of instances adapted from the literature and its performance and characteristics are studied through both comparative studies and detailed analyses at the solution structure level. Implications for practical applications are discussed and further research directions are also provided. Elsevier 2014-02-28 Article PeerReviewed Bai, Ruibin, Wallace, Stein W., Li, Jingpeng and Chong, Alain Yee-Loong (2014) Stochastic service network design with rerouting. Transportation Research Part B: Methodological, 60 . pp. 50-65. ISSN 0191-2615 service network design; stochastic programming; transportation logistics; rerouting https://www.sciencedirect.com/science/article/pii/S0191261513001999?via%3Dihub doi:10.1016/j.trb.2013.11.001 doi:10.1016/j.trb.2013.11.001
spellingShingle service network design; stochastic programming; transportation logistics; rerouting
Bai, Ruibin
Wallace, Stein W.
Li, Jingpeng
Chong, Alain Yee-Loong
Stochastic service network design with rerouting
title Stochastic service network design with rerouting
title_full Stochastic service network design with rerouting
title_fullStr Stochastic service network design with rerouting
title_full_unstemmed Stochastic service network design with rerouting
title_short Stochastic service network design with rerouting
title_sort stochastic service network design with rerouting
topic service network design; stochastic programming; transportation logistics; rerouting
url https://eprints.nottingham.ac.uk/49413/
https://eprints.nottingham.ac.uk/49413/
https://eprints.nottingham.ac.uk/49413/