Transport network design and mode choice modeling for automobile distribution: A case study

This paper describes the development and implementation of a mixed integer programming type model designed to determine the best transport mode and rail network location strategy for a leading international automobile manufacturer to supply its North American dealers. In particular, this manufacturer wished to establish a plan for its future vehicle distribution that would determine the best mix of truck, conventional rail and containerized intermodal rail to transport cars and light trucks from its North American plants and ports of entry to its dealers. Further, the manufacturer desired to evaluate the proper number, types and locations of rail terminals required for its distribution network. This paper is intended to provide a perspective on the practical application side of this study and how one can conduct such studies in a condensed time period. Thus, in addition to describing the study problem, results and benefits, the paper also emphasizes such topics as how one can manipulate relatively ‘user friendly’ commercial software to address potentially complex mode choice and location problems.