A three-stage service network design model in synchromodal transport

Abstract

Synchromodal transport is potentially cheaper and more sustainable than unimodal road transport. However, capacity on high-capacity transport modes such as trains is usually determined a longer period in advance than truck capacity. When logistics service providers buy capacity on those services, they might lack complete information on their transport demand. Capacity decisions are then updated when additional information becomes available. This study proposes a service network design model to assist capacity decisions from the perspective of logistics service providers in a synchromodal setting. Existing literature addresses this stochastic problem with two-stage models in which the initial capacity decisions are taken based on a known demand distribution and recourse actions are taken once complete demand information is available. Our model differs by including a third intermediate stage during which updates are performed with partial information. Two types of uncertainty are included: stochastic demand and a stochastic decrease of the capacity available on the market, taking into account the overall demand on the market.