Transportation Research Part E: Logistics and Transportation Review ( IF 8.3 ) Pub Date : 2023-02-01 , DOI: 10.1016/j.tre.2023.103028 Chuanju Liu , Junlong Zhang , Shaochong Lin , Zuo-Jun Max Shen
We introduce and study a challenging service network design problem arising within a city logistics company based in Beijing, China. To provide cost-effective same-day delivery services, the company divides the whole urban area into regions. Within each region, a fleet of small-capacity vehicles picks up and delivers packages. A fleet of line-haul vehicles (large-capacity vehicles) executes consistent multiple trips over the regions to transport consolidated packages, during which transshipment is allowed. In this study, we focus on designing the trips of line-haul vehicles, i.e., their region visiting sequences, as the performance of the logistics system depends significantly on the coordination of line-haul vehicles. We model the trip design problem as a service network design problem with consistent multiple trips. We develop a continuous-time MIP model to formulate the problem and optimally solve small-size instances. In addition, we propose an adaptive large neighborhood search heuristic to solve larger instances. Numerical experiments on randomly generated instances as well as real-world operational data demonstrate the effectiveness and efficiency of our solution approach.