A metaheuristic for stochastic service network design

Authors:
Arild Hoff;Arnt-Gunnar Lium;Arne Løkketangen;Teodor Gabriel Crainic
Affiliations:
Molde University College, Molde, Norway 6402;SINTEF Technology and Society, Applied Economics and Operations Research, Trondheim, Norway 7465;Molde University College, Molde, Norway 6402;Department of Management and Technology, ESG UQAM and CIRRELT, Université de Montréal, Montréal, Canada H3C 3J7
Venue:
Journal of Heuristics
Year:
2010

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Abstract

This paper considers the time-dependent service network design problem with stochastic demand represented by scenarios. To our knowledge, this is the first attempt to address real life-size instances of this problem. The model integrates the balancing of empty vehicles, the cost of handling freight in intermediate terminals, the costs associated with moving freight using the selected services, and the penalty costs of not being able to deliver freight. A metaheuristic is presented and computational results are reported on a set of large new problem instances.