Multi-objective Management in Freight Logistics: Increasing Capacity, Service Level and Safety with Optimization Algorithms

195 Pages·2008·2.05 MB·English

by  Massimiliano Caramia

Multi-objective Management in Freight Logistics
Massimiliano Caramia • Paolo Dell’Olmo
Multi-objective Management
in Freight Logistics
Increasing Capacity, Service Level and Safety
with Optimization Algorithms

123
Massimiliano Caramia, PhD Paolo Dell’Olmo, PhD
Università di Roma “Tor Vergata” Università di Roma “La Sapienza”
Dipartimento di Ingegneria dell’Impresa Dipartimento di Statistica, Probabilità
Via del Politecnico, 1 e Statistiche Applicate
00133 Roma Piazzale Aldo Moro, 5
Italy 00185 Roma
Italy

ISBN 978-1-84800-381-1 e-ISBN 978-1-84800-382-8
DOI 10.1007/978-1-84800-382-8
British Library Cataloguing in Publication Data
Caramia, Massimiliano
Multi-objective management in freight logistics :
increasing capacity, service level and safety with
optimization algorithms
1. Freight and freightage - Mathematical models 2. Freight
and freightage - Management 3. Business logistics
I. Title II. Dell'Olmo, Paolo, 1958-
388'.044'015181
ISBN-13: 9781848003811
Library of Congress Control Number: 2008935034
© 2008 Springer-Verlag London Limited
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Preface
Thecontentofthisbookismotivatedbytherecentchangesinglobalmarketsandthe
availabilityofnewtransportationservices.Indeed,thecomplexityofcurrentsupply
chainssuggeststodecisionmakersinlogisticstoworkwithasetofefficient(Pareto-
optimal)solutions,mainlytocapturedifferenteconomicalaspectsthat,ingeneral,
oneoptimalsolutionrelatedtoasingleobjectivefunctionisnotabletocaptureen-
tirely. Motivated by these reasons, we study freight transportation systems with a
specific focus on multi-objective modelling. The goal is to provide decision mak-
erswithnewmethodsandtoolstoimplementmulti-objectiveoptimizationmodels
inlogistics.Thebookcombinestheoreticalaspectswithapplications,showingthe
advantagesandthedrawbacksofadoptingscalarizationtechniques,andwhenitis
worthwhile to reduce the problem to a goal-programming one. Also, we show ap-
plications where more than one decision maker evaluates the effectiveness of the
logistic system and thus a multi-level programming is sought to attain meaningful
solutions.Afterpresentingthegeneralworkingframework,weanalyzelogisticis-
suesinamaritimeterminal.Next,westudymulti-objectiverouteplanning,relying
on the application of hazardous material transportation. Then, we examine freight
distributiononasmallerscale,asforthecaseofgoodsdistributioninmetropolitan
areas.Finally,wepresentahuman-workforceproblemarisinginlogisticplatforms.
Thegeneral approachfollowedinthetextisthatofpresentingmathematics,algo-
rithmsandtherelatedexperimentationsforeachproblem.
Rome, MassimilianoCaramia
May2008 PaoloDell’Olmo
v
Acknowledgements
TheauthorswishtothankEugeniaCivico,IsabellaLari,AlessandroMassacciand
Maria Grazia Mecoli for their contribution in the implementation of the models
in Chapter 3; Pasquale Carotenuto, Monica Gentili and Andrea Scozzari for their
contribution to the hazmat project to which Chapter 4 refers; Monica Gentili and
PituMirchandaniasco-authorsofpreviousworkrelatedtoChapter6.
vii
Contents
ListofFigures ..................................................... xiii
ListofTables ...................................................... xv
1 Introduction................................................... 1
1.1 FreightDistributionLogistic ................................. 1
2 Multi-objectiveOptimization.................................... 11
2.1 Multi-objectiveManagement................................. 11
2.2 Multi-objectiveOptimizationandPareto-optimalSolutions ....... 12
2.3 TechniquestoSolveMulti-objectiveOptimizationProblems....... 14
2.3.1 TheScalarizationTechnique........................... 15
2.3.2 ε-constraintsMethod ................................. 18
2.3.3 GoalProgramming................................... 21
2.3.4 Multi-levelProgramming ............................. 22
2.4 Multi-objectiveOptimizationIntegerProblems.................. 25
2.4.1 Multi-objectiveShortestPaths ......................... 27
2.4.2 Multi-objectiveTravellingSalesmanProblem ............ 32
2.4.3 Other Work in Multi-objective Combinatorial
OptimizationProblems ............................... 33
2.5 Multi-objectiveCombinatorialOptimizationbyMetaheuristics .... 34
3 MaritimeFreightLogistics ...................................... 37
3.1 CapacityandServiceLevelinaMaritimeTerminal .............. 37
3.1.1 TheSimulationSetting ............................... 40
ix
x Contents
3.1.2 TheSimulationModel................................ 43
3.1.3 SimulationResultsAnalysis ........................... 47
3.2 FinalRemarksandPerspectivesonMulti-objectiveScenarios ..... 50
3.3 ContainerAllocationinaMaritimeTerminalandSchedulingof
InspectionOperations....................................... 51
3.3.1 ContainersAllocationinaMaritimeTerminal ............ 52
3.3.2 FormulationoftheAllocationModel.................... 54
3.4 SchedulingofCustomsInspections............................ 56
3.5 ExperimentalResults ....................................... 60
4 HazardousMaterialTransportationProblems..................... 65
4.1 Introduction ............................................... 65
4.2 Multi-objectiveApproachestoHazmatTransportation............ 68
4.2.1 TheProblemoftheRiskEquity ........................ 69
4.2.2 TheUncertaintyinHazmatTransportation ............... 70
4.2.3 SomeParticularFactorsInfluencingHazmatTransportation. 71
4.2.4 TechnologyinHazmatTransportation................... 71
4.3 RiskEvaluationinHazmatTransportation...................... 72
4.3.1 RiskModels ........................................ 72
4.3.2 TheTraditionalDefinitionofRisk ...................... 73
4.3.3 AlternativeDefinitionofRisk.......................... 75
4.3.4 AnAxiomaticApproachtotheRiskDefinition ........... 77
4.3.5 QuantitativeAnalysisoftheRisk....................... 78
4.4 TheEquityandtheSearchforDissimilarPaths.................. 80
4.4.1 TheIterativePenaltyMethod .......................... 80
4.4.2 TheGatewayShortest-Paths(GSPs)Method ............. 81
4.4.3 TheMinimaxMethod ................................ 83
4.4.4 The p-dispersionMethod ............................. 84
4.4.5 AComparisonBetweenaMulti-objectiveApproachand
IPM ............................................... 87
4.5 TheHazmatTransportationonCongestedNetworks ............. 89
4.5.1 Multi-commodityMinimumCostFlowwithandWithout
Congestion ......................................... 91
4.5.1.1 TheModelsFormulation...................... 91
4.5.2 TestProblemsonGridGraphs ......................... 95
Contents xi
4.5.3 TheLinearizedModelwithCongestion.................. 97
4.6 TheProblemofBalancingtheRisk............................ 98
4.6.1 ProblemFormulation................................. 98
4.7 Bi-levelOptimizationApproachestoHazmatTransportation ......100
5 CentralBusinessDistrictFreightLogistic.........................103
5.1 Introduction ...............................................104
5.2 ProblemDescription ........................................105
5.2.1 MathematicalFormulation ............................107
5.3 SolutionStrategies .........................................111
5.3.1 ExperimentalResults.................................112
5.4 Conclusions ...............................................119
6 HeterogeneousStaffSchedulinginLogisticPlatforms ..............121
6.1 Introduction ...............................................121
6.2 TheHeterogeneousWorkforceSchedulingProblem..............126
6.3 ConstraintsandObjectiveFunctionsoftheCHWSP .............126
6.3.1 Constraints .........................................127
6.3.2 ObjectiveFunctions ..................................128
6.4 SimulatedAnnealing:GeneralPresentation.....................131
6.4.1 TheLengthoftheMarkovChains ......................133
6.4.2 TheInitialValueoftheControlParameter ...............134
6.4.3 TheFinalValueoftheControlParameter ................135
6.4.4 DecrementoftheControlParameter ....................135
6.5 OurSimulatedAnnealingAlgorithm ..........................137
6.5.1 ProcedureforDeterminingtheFirstValueoftheControl
Parameter ..........................................137
6.5.2 EquilibriumCriterionandStopCriterion ................138
6.5.3 DecrementRulefortheControlParameter ...............138
6.5.4 FunctionPerturb(s →s ) .............................139
i j
6.6 ExperimentalResults .......................................140
6.6.1 PresentationoftheExperimentsandImplementationDetails 140
6.6.2 AnalysisoftheExperiments ...........................141
6.6.3 ComputationalTimes.................................146
6.7 Conclusions ...............................................147
xii Contents
AAMPLCode:TheContainer-allocationProblem.....................149
BAMPLCode:TheInspectionSchedulingProblem....................151
CCodeintheCLanguage:TheIterativePenaltyMethodAlgorithm.....153
DCodeintheCLanguage:TheP-DispersionAlgorithm................163
References.........................................................175
Index .............................................................187