Collaborative Service Network Design for Multiple Logistics Carriers Considering Demand Uncertainty

Abstract

Collaborative designing of service networks using multiple logistics carriers can bring advantages in both economic and environmental terms, and these carriers have symmetry in their service areas. To enable such a collaborative service network and the corresponding benefits, this study proposes a problem of collaborative service network design (CSND) considering demand uncertainty. This problem is formulated as a two-stage robust optimization model using a budget uncertainty set to handle the uncertain demand. A column-and-constraint generation algorithm is developed to accurately solve the robust model. Numerical experiments show that the proposed algorithm outperforms the Benders decomposition algorithm in terms of solving efficiency and quality. Through comparative experiments, this research validates the advantages of collaborative designing and the robustness of model solutions. In addition, three allocation mechanisms are tested to investigate the importance of allocation in CSND.

Keywords

• service network design
• robust optimization
• uncertainty
• column-and-constraint generation