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A study of demand stochasticity in service network design

Lium, Arnt-Gunnar and Crainic, Teodor G and Wallace, Stein W (2009) A study of demand stochasticity in service network design. Transportation Science, 43 (2). pp. 144-157.

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Abstract

The objective of this paper is to investigate the importance of introducing stochastic elements into service network design formulations. To offer insights into this issue, we take a basic version of the problem in which periodic schedules are built for a number of vehicles and where only the demand may vary stochastically. We study how solutions based on uncertain demand differ from solutions based on deterministic demand and provide qualitative descriptions of the structural differences. Some of these structural differences provide a hedge against uncertainty by using consolidation. This way we get consolidation as output from the model rather than as an a priori required property. Service networks with such properties are robust, as seen by the customers, by providing operational flexibility.

Item Type: Article
Journal or Publication Title: Transportation Science
Uncontrolled Keywords: stochastic programming ; service network design ; scheduling ; flexibility ; robustness
Subjects: UNSPECIFIED
Departments: Lancaster University Management School > Management Science
ID Code: 45407
Deposited By: ep_importer_pure
Deposited On: 11 Jul 2011 19:31
Refereed?: Yes
Published?: Published
Last Modified: 19 Dec 2013 16:15
Identification Number:
URI: http://eprints.lancs.ac.uk/id/eprint/45407

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