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Stochastic Service Network Design: A Deterministic Primal Heuristic

PublisherUniversite de Montreal
Format89.7KB PDFDate added08 Sep 2006
Topics Network Design
Downloads24

This paper has demonstrated that introducing stochastic demand into a service network design model produces solutions qualitatively different from those stemming from deterministic models. These structural differences are now used to create a primal deterministic heuristic for finding solutions to the stochastic program. For the study reported in this paper, a version of a multi-period service network design model inspired by less-than-truckload motor carrier cases with repetitive schedules is used. Based on the knowledge of the demand distributions, the paper proposes a two-phase approach, consisting of a construction followed by an improvement heuristic to build a feasible solution to the deterministic formulation. The construction and improvement operations follow from the major patterns observed in the previous study.

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