Joint optimization of freight facility location and pavement infrastructure rehabilitation under network traffic equilibrium

Establishment of industry facilities often induces heavy vehicle traffic that exacerbates congestion and pavement deterioration in the neighboring highway network. While planning facility locations and land use developments, it is important to take into account the routing of freight vehicles, the impact on public traffic, as well as the planning of pavement rehabilitation. This paper presents an integrated facility location model that simultaneously considers traffic routing under congestion and pavement rehabilitation under deterioration. The objective is to minimize the total cost due to facility investment, transportation cost including traffic delay, and pavement life-cycle costs. Building upon analytical results on optimal pavement rehabilitation, the problem is formulated into a bi-level mixed-integer non-linear program (MINLP), with facility location, freight shipment routing and pavement rehabilitation decisions in the upper level and traffic equilibrium in the lower level. This problem is then reformulated into an equivalent single-level MINLP based on Karush–Kuhn–Tucker (KKT) conditions and approximation by piece-wise linear functions. Numerical experiments on hypothetical and empirical network examples are conducted to show performance of the proposed algorithm and to draw managerial insights.     

Modeling residential location choice in relation to housing location and road tolls on congested urban highway networks

We present a reformulation of the residential location submodel of the Integrated Model of Residential and Employment Location as a network equilibrium problem, thereby making travel costs by auto endogenous. The location of housing supply is examined as a welfare maximization problem for both user-optimal and system-optimal travel costs using concepts of bilevel programming. Finally, we briefly discuss how the employment submodel can be reformulated, and the entire model solved as a variational inequality problem.     

Biofuel refinery location and supply chain planning under traffic congestion

This research focuses on planning biofuel refinery locations where the total system cost for refinery investment, feedstock and product transportation and public travel is minimized. Shipment routing of both feedstock and product in the biofuel supply chain and the resulting traffic congestion impact are incorporated into the model to decide optimal locations of biofuel refineries. A Lagrangian relaxation based heuristic algorithm is introduced to obtain near-optimum feasible solutions efficiently. To further improve optimality, a branch-and-bound framework (with linear programming relaxation and Lagrangian relaxation bounding procedures) is developed. Numerical experiments with several testing examples demonstrate that the proposed algorithms solve the problem effectively. An empirical Illinois case study and a series of sensitivity analyses are conducted to show the effects of highway congestion on refinery location design and total system costs.     

A multi-period optimization model for the deployment of public electric vehicle charging stations on network

A multi-period multipath refueling location model is developed to expand public electric vehicle (EV) charging network to dynamically satisfy origin–destination (O–D) trips with the growth of EV market. The model captures the dynamics in the topological structure of network and determines the cost-effective station rollout scheme on both spatial and temporal dimensions. The multi-period location problem is formulated as a mixed integer linear program and solved by a heuristic based on genetic algorithm. The model and heuristic are justified using the benchmark Sioux Falls road network and implemented in a case study of South Carolina. The results indicate that the charging station rollout scheme is subject to a number of major factors, including geographic distributions of cities, vehicle range, and deviation choice, and is sensitive to the types of charging station sites.     

Locating rental stations and bikeways in a public bike system

To determine the spatial distribution of rental stations and bikeways in a public bike system, this paper proposes a facility location and network design model. The model is developed as a multi-objective programing problem that considers four objectives (minimizing cyclist risk, maximizing cyclist comfort, minimizing adverse impacts on traffic and maximizing service coverage) and multiple constraints (monetary budget, network connectivity, station spacing, bikeway types, station number and value ranges of decision variables). The ε-constraint method solves the programing problem for the public bike system in Daan District, Taipei City, Taiwan. The nine non-dominated alternatives generated are all markedly better than existing locations of rental stations and bikeways. Scenario analysis results indicate that increasing the construction budget for bikeways significantly improves cyclist safety and comfort whilst increasing the adverse impact on traffic. Planners can use this model to develop public bike systems that spatially integrate rental stations and bikeway networks.     

Hub location with flow economies of scale

A characteristic feature of hub and spoke networks is the bundling of flows on the interhub links. This agglomeration of flows leads to reduced travel costs across the interhub links. Current models of hub location do not adequately model the scale economies of flow that accrue due to the agglomeration of flows. This paper shows that current hub location models, by assuming flow-independent costs, not only miscalculate total network cost, but may also erroneously select optimal hub locations and allocations. The model presented in this paper more explicitly models the scale economies that are generated on the interhub links and in doing so provides a more reliable model representation of the reality of hub and spoke networks.     

Solving the station-based one-way carsharing network planning problem with relocations and non-linear demand

One-way station-based carsharing systems allow users to return a rented car to any designated station, which could be different from the origin station. Existing research has been mainly focused on the vehicle relocation problem to deal with the travel demand fluctuation over time and demand imbalance in space. However, the strategic planning of the stations’ location and their capacity for one-way carsharing systems has not been well studied yet, especially when considering vehicle relocations simultaneously. This paper presents a Mixed-integer Non-linear Programming (MINLP) model to solve the carsharing station location and capacity problem with vehicle relocations. This entails considering several important components which are for the first time integrated in the same model. Firstly, relocation operations and corresponding relocation costs are taken into consideration to address the imbalance between trip requests and vehicle availability. Secondly, the flexible travel demand at various time steps is taken as the input to the model avoiding deterministic requests. Thirdly, a logit model is constructed to represent the non-linear demand rate by using the ratio of carsharing utility and private car utility. To solve the MINLP model, a customized gradient algorithm is proposed. The application to the SIP network in Suzhou, China, demonstrates that the algorithm can solve a real world large scale problem in reasonable time. The results identify the pricing and parking space rental costs as the key factors influencing the profitability of carsharing operators. Also, the carsharing station location and fleet size impact the vehicle relocation and carsharing patronage.     

Green supply chain network design to reduce carbon emissions

We consider a supply chain network design problem that takes CO₂ emissions into account. Emission costs are considered alongside fixed and variable location and production costs. The relationship between CO₂ emissions and vehicle weight is modeled using a concave function leading to a concave minimization problem. As the direct solution of the resulting model is not possible, Lagrangian relaxation is used to decompose the problem into a capacitated facility location problem with single sourcing and a concave knapsack problem that can be solved easily. A Lagrangian heuristic based on the solution of the subproblem is proposed. When evaluated on a number of problems with varying capacity and cost characteristics, the proposed algorithm achieves solutions within 1% of the optimal. The test results indicate that considering emission costs can change the optimal configuration of the supply chain, confirming that emission costs should be considered when designing supply chains in jurisdictions with carbon costs.     

Determinants of the property damage costs of tanker accidents

This study investigates determinants of the vessel, oil cargo spillage, and other-property damage costs of tanker accidents. Tobit estimation of a three-equation recursive model suggests that, among types of tanker accidents, fire/explosion accidents incur the largest vessel damage costs, but the smallest oil cargo spillage costs. Alternatively, grounding accidents incur the smallest vessel damage costs, but the largest oil cargo spillage costs, reflecting the difficulty of controlling oil cargo spillage subsequent to such accidents. Also, oil cargo spillage costs are lower for US flag tanker accidents. A dollar of vessel damage cost increases other-property damage cost by $0.06, whereas a dollar of oil cargo spillage increases this cost by $1.55.     

Incorporating institutional and spatial factors in the selection of the optimal locations of public electric vehicle charging facilities: A case study of Beijing,China

In this paper, we present a case study on planning the locations of public electric vehicle (EV) charging stations in Beijing, China. Our objectives are to incorporate the local constraints of supply and demand on public EV charging stations into facility location models and to compare the optimal locations from three different location models. On the supply side, we analyse the institutional and spatial constraints in public charging infrastructure construction to select the potential sites. On the demand side, interviews with stakeholders are conducted and the ranking-type Delphi method is used when estimating the EV demand with aggregate data from municipal statistical yearbooks and the national census. With the estimated EV demand, we compare three classic facility location models – the set covering model, the maximal covering location model, and the p-median model – and we aim to provide policy-makers with a comprehensive analysis to better understand the effectiveness of these traditional models for locating EV charging facilities. Our results show that the p-median solutions are more effective than the other two models in the sense that the charging stations are closer to the communities with higher EV demand, and, therefore, the majority of EV users have more convenient access to the charging facilities. From the experiments of comparing only the p-median and the maximal covering location models, our results suggest that (1) the p-median model outperforms the maximal covering location model in terms of satisfying the other’s objective, and (2) when the number of charging stations to be built is large, or when minor change is required, the solutions to both models are more stable as p increases.     

Determining the number and location of winter road maintenance depots – a case study of the district road network in Serbia

Determining the number and location of depots for winter road maintenance (WRM) represents one of the important strategic decisions while planning WRM activities. However, most organizations dealing with WRM make empirically based decisions. Optimizing the number and location of WRM depots has the potential to achieve considerable cost savings, improve mobility and efficiency, as well as reduce environmental impacts. This paper presents two optimization models. The first model determines the location of WRM depots by minimizing the total distance travelled by maintenance vehicles. The second model determines the optimum number and location of WRM depots by minimizing total transportation costs and capital expenditure and operational expenditure of the depots. The models are then applied to the district road network in Serbia. Results show that their application could lead to significant reductions in WRM costs.     

A linear programming-based method for the network revenue management problem of air cargo

One critical operational issue of air cargo operation faced by airlines is the control over the sales of their limited cargo space. Since American Airlines’ successful implementation in the post-deregulation era, revenue management (RM) has become a common practice for the airline industry. However, unlike the air passenger operation supported by well-developed RM systems with advanced decision models, the decision process in selling air cargo space to freight forwarders is usually based on experience, without much support from optimization techniques. This study first formulates a multi-dimensional dynamic programming (DP) model to present a network RM problem for air cargo. In order to overcome the computational challenge, this study develops two linear programming (LP) based models to provide the decision support operationally suitable for airlines. In addition, this study further introduces a dynamic adjustment factor to alleviate the inaccuracy problem of the static LP models in estimating resource opportunity cost. Finally, a numerical experiment is performed to validate the applicability of the developed model and solution algorithm to the real-world problems.     

Integrated optimization of location and signal timings for midblock pedestrian crosswalk

Finding the optimal location and signal timing plan is one of the most critical operational issues for a signalized midblock crosswalk on an arterial section, which is increasingly being installed in highly populated areas in developing countries such as China. This paper presents a multiobjective optimization model and an efficient solution algorithm for a one‐ or two‐stage midblock crosswalk on an arterial section. The proposed model aims to produce the optimal location and corresponding signal settings to balance the trade‐off between pedestrian delays and vehicular bandwidth when the signals of the crosswalk and adjacent intersections are coordinated. The proposed model has three distinguishing features: (i) the costs for both pedestrians and vehicles are considered in a unified framework; (ii) the location and signal settings of the midblock crosswalk are simultaneously optimized; and (iii) a multiobjective optimization approach is developed to study the effectiveness of the midblock crosswalk under conditions in which the priorities between pedestrian and vehicle flows differ. A nondominated sorting genetic algorithm II (NSGA II)‐based algorithm is developed to solve the model efficiently. The results of the case study showed that the proposed model would help traffic practitioners, researchers, and authorities properly locate and signalize a one‐ or two‐stage midblock pedestrian crosswalk on an arterial section. Copyright © 2015 John Wiley & Sons, Ltd.     

A reliable location model for heterogeneous systems under partial capacity losses

Due to the interdependency between multiple infrastructure systems, the performance of a facility may depend on the resources or supplies received from other facilities. However, cross-system interdependence has seldom been studied in the location design context, probably due to the lack of a concise model describing interdependence across heterogeneous systems. This paper proposes a new heterogeneous flow scheme to describe cross-system interdependence. This scheme has two features distinguished from existing models in describing an interdependent facility location problem. First, it is a simple linear model upon which a compact facility location model can be built. Secondly, it relaxes the need to maintain flow conservation between different systems and is suitable in describing heterogeneous systems that take in and output different resources or services. Built on this scheme, this paper proposes a reliable location design model for a nexus of interdependent infrastructure systems. This model aims to locate the optimal facility locations in multiple heterogeneous systems to balance the tradeoff between the facility investment and the expected nexus operation performance. Different from other reliable facility location models, this expected performance captures interdependence among heterogeneous systems due to the resource input-output relationships. The consideration of continuous partial capacity losses complements the reliable location literature that mainly focuses on binary disruptions. Two numerical examples are conducted for investigating features and applications of the proposed model. The results indicate that with a standard off-the-shelf integer programming solver, the proposed model is able to solve optimal facility location design for problem instances of realistic scales to the near-optimum solutions with optimality gap assurance. Sensitivity analyses of key parameters indicate that improving facility capacity and reducing interdependency between systems can mitigate impacts of facility capacity losses and reduce the overall system cost.     

Cargo Container Loading Plan Model and Solution Method for International Air Express Carriers

Abstract

In this article, a cargo container loading plan model is developed based on the operations of FedEx, the international air express carrier. The objective is to minimize total container handling cost, subject to related operating constraints. The model is expected to be a useful planning tool whereby international air express carriers such as FedEx can decide on container loading plans that will lead to lower operating costs, thus enhancing profits and market competitiveness. The model is formulated as a non-linear mixed integer program that is characterized as NP-hard. A solution method is then developed, with the use of the mathematical programming solver, CPLEX, to solve the problem efficiently. To evaluate the model and the solution method, we perform a case study using data from FedEx. The preliminary results indicate that the model and the solution method are both efficient and effective.     

The impact of transport policies on railroad intermodal freight competitiveness – The case of Belgium

This paper discusses the impact of three freight transport policies aiming to promote railroad intermodal transport in Europe, and examines the case of Belgium as a testing ground. These policies consist in subsidizing intermodal transport operations (such as in Belgium, to stimulate rail transport), internalizing external costs (as recommended by the European Union in order to foster cleaner modes), and adopting a system perspective when optimizing the location of inland intermodal terminals. The study proposes an innovative mixed integer intermodal freight location-allocation model based on hub-location theory and deals with non-linear transport costs in order to replicate economies of distance. Our analysis suggests that subsidizing has a significant impact on the volumes transported by intermodal transport, and, to a lesser extent, that optimizing terminal location increases the competitiveness of intermodal transport. On the other hand, according to our assumptions, internalizing external costs can negatively impact the promotion of intermodality. This finding indicates that innovative last-mile transports are needed in order to reduce the external impacts of drayage operations.     

Joint inventory-location problem under the risk of probabilistic facility disruptions

This paper studies a reliable joint inventory-location problem that optimizes facility locations, customer allocations, and inventory management decisions when facilities are subject to disruption risks (e.g., due to natural or man-made hazards). When a facility fails, its customers may be reassigned to other operational facilities in order to avoid the high penalty costs associated with losing service. We propose an integer programming model that minimizes the sum of facility construction costs, expected inventory holding costs and expected customer costs under normal and failure scenarios. We develop a Lagrangian relaxation solution framework for this problem, including a polynomial-time exact algorithm for the relaxed nonlinear subproblems. Numerical experiment results show that this proposed model is capable of providing a near-optimum solution within a short computation time. Managerial insights on the optimal facility deployment, inventory control strategies, and the corresponding cost constitutions are drawn.     

A multi-objective optimization model for sustainable logistics facility location

This paper offers an exploratory study of sustainable facility location. The methodology, based on the classical uncapacitated facility location problem, provides decision makers with a multi-objective optimization model to determine the trade-off among economic, service and environmental considerations. Our results indicate that it may be desirable to open more facilities than optimal from a narrow economic perspective to reduce the carbon dioxide emissions of transport and to improve service reliability.     

Optimal recharging strategies for electric vehicle fleets with duration constraints

Electrical vehicles (EVs) have become a popular green transportation means recently because they have lower energy consumption costs and produce less pollution. The success of EVs relies on technologies to extend their driving range, which can be achieved by the good deployment of EV recharging stations. This paper considers a special EV network composed of fixed routes for an EV fleet, where each EV moves along its own cyclic tour of depots. By setting up a recharging station on a depot, an EV can recharge its battery for no longer than a pre-specified duration constraint. We seek an optimal deployment of recharging stations and an optimal recharging schedule for each EV such that all EVs can continue their tours in the planning horizon with minimum total costs. To solve this difficult location problem, we first propose a mixed integer program (MIP) formulation and then derive four new valid inequalities to shorten the solution time. Eight MIP models, which were created by adding different combinations of the four valid inequalities to the basic model, have been implemented to test their individual effectiveness and synergy over twelve randomly generated EV networks. Valuable managerial insights into the usage of valid inequalities and the relations between the battery capacity and the total costs, number of recharging facilities to be installed, and running time are analyzed.