Article ID: | iaor1996959 |
Country: | Switzerland |
Volume: | 61 |
Issue: | 1 |
Start Page Number: | 165 |
End Page Number: | 188 |
Publication Date: | Dec 1995 |
Journal: | Annals of Operations Research |
Authors: | Powell Warren B., Simo Hugo P., Carvalho Tassio A., Godfrey Gregory A. |
Keywords: | queueing networks |
This paper introduces a new framework for modeling and solving dynamic fleet management problems, which we call the Logistics Queueing Network (LQN). A variety of problems in logistics involve the combined problem of moving freight from origin to destination while simultaneously managing the capacity required to move this freight. Standard formulations for real-world problems usually lead to intractably large linear programs. The LQN approach can take into account more real-world detail and is considerably faster than classical LP formulations. The solutions generated using the LQN approach are shown to be within a few percentage points of the LP optimal solutions depending on the size of the capacity fleets.