709. Robust Service Network Design under Uncertain Travel Times
Invited abstract in session TC-17: Service Network Design: challenges and opportunities, stream Combinatorial Optimization.
Tuesday, 12:30-14:00Room: Esther Simpson 2.08
Authors (first author is the speaker)
| 1. | Giacomo Lanza
|
| Computer Science, University of Pisa | |
| 2. | Maria Grazia Scutellà
|
| Informatica, Universita' di Pisa | |
| 3. | Mauro Passacantando
|
| Department of Business and Law, University of Milano-Bicocca |
Abstract
Service network design is a fundamental problem that freight carriers face at the tactical level when planning a consolidation-based transportation network. The objective is to define a transportation plan - including the selection and scheduling of services as well as routing policies for freight - that meets estimated demand while achieving the carrier’s economic and service quality targets. However, uncertainty in the system (e.g., demand or travel times fluctuations) poses a significant challenge in decision-making, impacting both operations and service reliability, potentially leading to additional costs.
In this work, we propose a robust formulation of the problem that explicitly accounts for uncertainty in travel times. The goal is to determine a cost-efficient transportation plan that ensures selected services operate as scheduled and freight arrives at its destination within the agreed-upon delivery time, even under worst-case travel time scenarios defined within a given uncertainty set.
We present a min-max mathematical formulation for this robust optimization problem and an implementor-adversary resolution approach, based on the proposed formulation. We discuss preliminary computational results on medium-sized instances, aiming to assess the algorithm’s efficiency, and examine the structural differences between robust and deterministic solutions.
Keywords
- Transportation
- Combinatorial Optimization
- Robust Optimization
Status: accepted
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