The distribution of frozen goods require tight integration of production, stocking, and transportation in order specialized logistic operators can efficiently run distribution processes while maintaining high service levels and food quality (Hsiao et al., 2017). In this settings a key problem is the optimal location of distribution hubs which are equipped with refrigerated warehouses able to maintain food quality. Optimal location is effected by dynamism in frozen goods market which lead to a frequent relocation of hubs. In this work we present a real case of hub location problem for a logistic operator of the cold chain in Italy. Hub Location Problem (HLP) can be considered a variant of location problems (Mirchandani and Francis, 1990). In HLP, demands are defined on a digraph where nodes are decomposed on client C and hub H nodes respectively. Customer demands are identified as transfer orders (i,j) from origins i to destinations j. Arcs connecting hubs are in general associated with a discount and hub activation have a fixed cost. The HLP consider the minimization of the total traveling and fixed hub activation costs and can be solved with similar approaches developed in classical facility location problems (Ernst and Krishnamoorthy, 1999). In this work we present a variant of the HLP in which direct shipment and specific delivery constraints are considered as requirements of the industry of distribution of frozen food. The problem is formulated as a mixed integer linear programming model (MILP). Experimental studies on real case instances revealed complexities in the problem with medium size instances. Bounds are provided and management insights on test results shown potential benefits of the proposed optimization together with issues on cost parameter measurement.
The hub location problem in the cold food chain
Giuseppe Stecca;
2017
Abstract
The distribution of frozen goods require tight integration of production, stocking, and transportation in order specialized logistic operators can efficiently run distribution processes while maintaining high service levels and food quality (Hsiao et al., 2017). In this settings a key problem is the optimal location of distribution hubs which are equipped with refrigerated warehouses able to maintain food quality. Optimal location is effected by dynamism in frozen goods market which lead to a frequent relocation of hubs. In this work we present a real case of hub location problem for a logistic operator of the cold chain in Italy. Hub Location Problem (HLP) can be considered a variant of location problems (Mirchandani and Francis, 1990). In HLP, demands are defined on a digraph where nodes are decomposed on client C and hub H nodes respectively. Customer demands are identified as transfer orders (i,j) from origins i to destinations j. Arcs connecting hubs are in general associated with a discount and hub activation have a fixed cost. The HLP consider the minimization of the total traveling and fixed hub activation costs and can be solved with similar approaches developed in classical facility location problems (Ernst and Krishnamoorthy, 1999). In this work we present a variant of the HLP in which direct shipment and specific delivery constraints are considered as requirements of the industry of distribution of frozen food. The problem is formulated as a mixed integer linear programming model (MILP). Experimental studies on real case instances revealed complexities in the problem with medium size instances. Bounds are provided and management insights on test results shown potential benefits of the proposed optimization together with issues on cost parameter measurement.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
