cherit

In a given decentralized distribution network goods are delivered from a set of distribution centers (DC) over a complex transportation network towards a set of depots. The demand of customers is satisfied by these depots following a direct shipment strategy. The task is to minimize the total distri-bution costs by finding the optimal number and positions of the depots, while the DC and customers locations are fixed.

A solution procedure based on a decomposition of the considered two-staged facility location problem is proposed. Subject to the selection of depot locations within this solution procedure a rule-based method for adjusting the existing transportation plan is considered. Through this it was possible to get a realistic estimation of the transportation costs without solving complex vehicle routing problems. For this approach a software prototype was developed. It is now successfully operated by the Deutsche Post AG for planning and optimizing the number and locations of delivery bases within the letter and parcel mail distribution network in Germany.

Links zu diesem Beitrag:

• Operations Research 2008 (September 3rd-5th 2008, University of Augsburg, Germany).
• List of papers (pdf).
• Slides (pdf).

The talk presents a two-stage capacitated facility location problem for letter and parcel delivery. There are direct shipments from depots to customers, whereas the depots are served on delivery tours by one or more distribution centers. Actually, these tours are part of another complex transportation network which is why they have to be approximated in an adequate way. By comparing different options for modeling the transportation costs, a formulation of an appropriate model is developed and an efficient heuristic solution for large-scaled instances is presented.

Links zu diesem Beitrag:

• 21st European Conference on Operational Research (July 2-5, 2006, Iceland).
• Parallel Sessions (pdf).
• Slides (pdf).