A Benders decomposition approach for a distribution network design problem with consolidation and capacity considerations

Authors:
Halit íSter;Homarjun Agrahari
Affiliations:
Department of Industrial and Systems Engineering, Texas A&M University, College Station, TX, 77843-3131, United States;Division of Service Design and Performance, BNSF Railway, Fort Worth, TX, 76131-1322, United States
Venue:
Operations Research Letters
Year:
2011

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Abstract

We develop a model for a strategic freight-forwarding network design problem in which the design decisions involve the locations and capacities of consolidation and deconsolidation centers, and capacities on linehaul linkages as well as the shipment routes from origins to destinations through centers. We devise a solution approach based on Benders decomposition and conduct a computational study that illustrates the efficiency and the effectiveness of the approach.