Hub location–allocation in intermodal logistic networks

Abstract

Within the context of intermodal logistics, the design of transportation networks becomes more complex than it is for single mode logistics. In an intermodal network, the respective modes are characterized by the transportation cost structure, modal connectivity, availability of transfer points and service time performance. These characteristics suggest the level of complexity involved in designing intermodal logistics networks. This research develops a mathematical model using the multiple-allocation p-hub median approach. The model encompasses the dynamics of individual modes of transportation through transportation costs, modal connectivity costs, and fixed location costs under service time requirements. A tabu search meta-heuristic is used to solve large size (100 node) problems. The solutions obtained using this meta-heuristic are compared with tight lower bounds developed using a Lagrangian relaxation approach. An experimental study evaluates the performance of the intermodal logistics networks and explores the effects and interactions of several factors on the design of intermodal hub networks subject to service time requirements.