City logistics system design under cost uncertainty

Kunter, Utku Can
City Logistics (CL) is a quickly developing area of research aiming to develop the methods for designing efficient and effective freight distribution networks. We make an extensive review on CL as well as studies related to CL in order to describe the position of CL in the literature. Based on this review, the location and allocation decisions in a CL system under transportation cost uncertainty is analyzed from a strategic point of view. We use Value of Information analysis to compare different formulations of the problem and measure the difference between the facility location problems in the conventional setting and in CL setting in terms of value of information. Next, we propose two solution methods to handle instances of realistic size. First one is a variation of the L-Shaped method, using scenario-group cuts; and second one is an evolutionary algorithm which makes use of an embedded hybrid heuristic to evaluate chromosomes in reasonable time. The methods proposed have significant advantage over standard solvers, especially when solving large instances.
Citation Formats
U. C. Kunter, “City logistics system design under cost uncertainty,” M.S. - Master of Science, Middle East Technical University, 2015.