Optimizing multi-layer merge-in-transit supply chains

Document Type

Conference Proceeding

Publication Date

12-30-2014

Department

Department of Civil, Environmental, and Geospatial Engineering; Center for Cyber-Physical Systems

Abstract

The authors propose an integer programming model formulation and solution algorithm to model a multi-layer supply chain network for merge-in-transit pool operations. The model explicitly describes individual small size shipment transportation decisions on choosing merge-in-transit pool strategies and pool centers in a multi-carrier supply chain network. The model subjects to a set of merge-in-transit pool operation constraints at in-transit pool centers for orders from multiple origins and destinations, which do not require to hold inventory at pool centers but require simultaneous arrivals. To solve large-scale applications, the authors develop a logic-based Benders decomposition algorithm in a branch-and-bound framework that can deal with subproblems of integer programs. The authors demonstrate the effectiveness of the proposed algorithms in two supply chain networks.

Publisher's Statement

This paper was sponsored by TRB committee ADB30 Transportation Network Modeling.

Publication Title

Transportation Research Board 94th Annual Meeting

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