Transportation network design

Zhang Xiaohui

Contents

• Introduction• Literature review• Paper problem

Introduction

• Design how to transport in the supply chain• Objective

reduce costs, reduce transportation time• Transportation modes

railway(train), highway(truck), waterway(ship)

Review

• Truck transportation• Solution techniques

Transportation rates (uniform freight classification)Mathematical model (LP, algorithms)Simulation model

Problem

A

B

CD

EG

truckship

train

Design

• Decentralized warehouse• 3 ways of transportation

railway (maybe just only one choice)waterway (maybe just only once choice)highway (alternative choice)

Highway

• 3 types of trucks:truck A: 17ttruck B: 27ttruck C: 35t

costs Truck A Truck B Truck C

Fixed costs 0.735 0.971 1.442

petrol 1.180 1.450 1.550

Highway

• Different highway has different rates for trucks

• Different highway choices:A

B

C

D

F

E G

highway XY Truck A 17t Truck B 27t Truck C 35t

Toll

rate

Not overload 1.17 1.53 1.68

overload30％ 1.58 2.18 2.52

overload50％ 2.16 2.24 3.83

overload100

％5.39 8.23 10.36

Objective

• When getting an order, arrange the best transportation to minimize the total transportation costs, within the demander’s required lead time.

Thanks for your attention