Reducing transportation costs in distribution networks

Authors:
Xi Li;Andrew Lim;Zhaowei Miao;Brian Rodrigues
Affiliations:
Department of IELM, Hong Kong University of Science and Technology, Hong Kong;Department of IELM, Hong Kong University of Science and Technology, Hong Kong;School of Computer Science & Engineering, South China University of Technology, Guang Dong, P.R. China;Lee Kong Chian School of Business, Singapore Management University, Singapore
Venue:
IEA/AIE'06 Proceedings of the 19th international conference on Advances in Applied Artificial Intelligence: industrial, Engineering and Other Applications of Applied Intelligent Systems
Year:
2006

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Abstract

In this work, we model the conflicting objectives in a distribution network, i.e. trade-offs between transportation costs, inventory and time scheduling requirements. Transportation costs include time costs, truck setup costs, and the number of trucks used. The model is formulated as an integer program and a solution of two-stage metaheuristic is provided. Computational experiments are conducted to test the algorithms.