Optimal shipment decisions for an airfreight forwarder: Formulation and solution methods |
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Authors: | Zichao Li James H BookbinderSamir Elhedhli |
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Institution: | Department of Management Sciences, University of Waterloo, 200 University Avenue West, Waterloo, Ontario, Canada N2L 3G1 |
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Abstract: | We study the freight forwarder’s shipment planning problem in an airfreight forwarding network where a set of cargo shipments have to be transported to given destinations. We provide mixed integer programming formulations that use piecewise-linear cargo rates and account for volume and weight constraints, flight departure/arrival times, as well as shipment-ready times.After exploring the solution of such models using CPLEX, we devise two solution methodologies to handle large problem sizes. The first is based on Lagrangian relaxation, where the problems decompose into a set of knapsack problems and a set of network flow problems. The second is a local branching heuristic that combines branching ideas and local search. The two approaches show promising results in providing good quality heuristic solutions within reasonable computational times, for difficult and large shipment consolidation problems. |
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Keywords: | Air cargo Lagrangian relaxation Network planning Local branching Column generation Heuristics |
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