Abstract
Service network design problems arise at airlines (passenger and cargo), trucking companies, railroads, etc., wherever there is a need to determine cost minimizing routes and schedules, given constraints on resource availability and level of service. We focus on a particular service network design application, namely, the express shipment delivery problem, and we develop models and a solution technique designed specifically for large-scale express delivery problems with time windows. Using data from an express delivery company, we demonstrate that our approach can produce savings in total operating costs and provide a valuable tool for making decisions at strategic and tactical levels.
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