Continuum approximation techniques for the design of integrated package distribution systems

Karen Renee Smilowitz*, Carlos F. Daganzo

*Corresponding author for this work

Research output: Contribution to journalArticle

36 Scopus citations

Abstract

Complex package distribution systems are designed using idealizations of network geometries, operating costs, demand and customer distributions, and routing patterns. The goal is to find simple, yet realistic, guidelines to design and operate a network integrated both by transportation mode and service level; i.e., overnight (express) and longer (deferred) deadlines. The decision variables and parameters that define the problem are presented along with the models to approximate total operating cost. The design problem is then reduced to a series of optimization subproblems that can be solved easily. The proposed approach provides valuable insight for the design and operation of integrated package distribution systems. Qualitative conclusions suggest that benefits of integration are greater when deferred demand exceeds express demand. This insight helps to explain the different business strategies of package delivery firms today.

Original languageEnglish (US)
Pages (from-to)183-196
Number of pages14
JournalNetworks
Volume50
Issue number3
DOIs
StatePublished - Oct 1 2007

Keywords

  • Continuum approximation
  • Network design problem
  • Transportation

ASJC Scopus subject areas

  • Software
  • Information Systems
  • Hardware and Architecture
  • Computer Networks and Communications

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