The synchronized multi-commodity multi-service Transshipment-Hub Location Problem with cyclic schedules

The synchronized multi-commodity multi-service Transshipment-Hub Location Problem is a hub location problem variant faced by a logistics service provider operating in the context of synchromodal logistics. The provider must decide where and when to locate transshipment facilities in order to manage many customers' origin-destination shipments with release and due dates while minimizing a total cost given by location costs, transportation costs, and penalties related to unmet time constraints. The considered synchromodal network involves different transportation modes (e.g., truck, rail, river and sea navigation) to perform long-haul shipments and the freight synchronization at facilities for transshipment operations. To the best of our knowledge, this variant has never been studied before. Considering a time horizon in which both transportation services and demand follow a cyclic pattern, we propose a time-space network representation of the problem and an ad-hoc embedding of the time-dependent parameters into the network topology and the arcs' weight. This allows to model the flow synchronization required by the problem through a Mixed -Integer Linear Programming formulation with a simplified structure, similar to well-known hub location problems and avoiding complicating constraints for managing the time dimension. Through an extensive experimental campaign conducted over a large set of realistic instances, we present a computational and an economic analysis. In particular, we want to assess the potential benefits of implementing synchromodal logistics operations into long-haul supply-chains managed by large service providers. Since flexibility is one of the main features of synchromodality, we evaluate the impact on decisions and costs of different levels of flexibility regarding terminals' operations and customers' requirements.

Automated summary

This article presents a variant of the hub location problem faced by a logistics service provider operating in the context of synchromodal logistics. The problem involves locating transshipment facilities to manage origin-destination shipments while minimizing costs and meeting time constraints. The authors propose a time-space network representation and a mixed-integer linear programming formulation to model the problem and evaluate the potential benefits of synchromodal logistics operations.