We introduce a new distribution center (DC) location model that incorporates working inventory and safety stock inventory costs at the distribution centers. In addition, the model incorporates transport costs from the suppliers to the DCs that explicitly reflect economies of scale through the use of a fixed cost term. The model is formulated as a … Read more
This paper addresses a multi-period investment model for capacity expansion in an uncertain environment. Using a scenario tree approach to model the evolution of uncertain demand and cost parameters, and fixed-charge cost functions to model the economies of scale in expansion costs, we develop a multi-stage stochastic integer programming formulation for the problem. A reformulation … Read more
Attempts at reducing the externalities of freight transport in Europe are generally focused on the incorporation of a more significant use of rail into freight itineraries. One new scenario for increasing the share of rail in intermodal transport involves the development of a dedicated subnetwork of freight rail lines. Within this European Union project, the … Read more