Service network design with asset management: Formulations and comparative analyses

In this paper, we address the service network design with asset management problem, which integrates asset management considerations into service network design models for consolidation-based freight carriers. We propose model formulations based on arc variables for both flow and design, as well as formulations with path flow variables and new cycle design variables. Problem instances reflecting actual planning problems are used in the computational study to analyze the strengths and weaknesses of the various model formulations and the impact of asset management considerations on the transportation plan and the computational effort. Experimental results indicate that formulations based on cycle variables outperform traditional arc-based formulations, and that considering asset management issues may significantly impact the outcome of service planning models. (C) 2008 Elsevier Ltd. All rights reserved.