Abstract

SUMMARYIn a transportation network, decision making parameters may change and may cause the optimum value of objective function to vary in a specific range. Therefore, managers try to identify the effects of these changes by sensitive analysis to find appropriate solutions. In this paper, first, a model for cross‐dock transportation network considering direct shipment is presented, and then an algorithm based on branch and bound algorithm and dual price concept for sensitive analysis is developed. When managers encounter problems such as budget limit, they may decide to change the capacity of trucks as a procedure to reduce the transportation costs of the network. The algorithm provides a useful lower bound on the solutions of the problems and makes it easy for the managers to eliminate inappropriate options of truck capacities, which cannot lead to cost reduction. To verify the algorithm, an example will be given at the end of the paper. Copyright © 2013 John Wiley & Sons, Ltd.

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