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23 August 2021
Article (Scientific journals)
An iterative two-stage heuristic algorithm for a bilevel service network design and pricing model
Tawfik, Christine Maher Fouad  ; Gendron, Bernard; Limbourg, Sabine 
2021 • In European Journal of Operational Research
Peer Reviewed verified by ORBi
 

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Keywords :
heuristics; bilevel programming; network design; network pricing; inverse optimization
Abstract :
[en] Building upon earlier research, we revisit a bilevel formulation of service design and pricing for freight networks, with the aim of investigating its algorithmic aspects. The model adds substantial computational challenges to the existing literature, as it deals with general integer network design variables. An iterative heuristic algorithm is introduced, based on the concepts of inverse optimization and neighbourhood search. The procedure alternates between two versions of restricted formulations of the model while inducing promising changes into the service assignments. The approach has proven a high performance for all of the considered real-world instances. Its efficiency rests on its ability to deliver results within a close proximity to those obtained by the exact solver in terms of quality, yet within a significantly smaller amount of time, and to land feasible solutions for the large-sized instances that could not be previously solved. In line with the sustainable transport goals, a deeper observation of the transport management side highlights the strategy of the algorithm favouring freight consolidation and achieving high load factors.
Disciplines :
Quantitative methods in economics & management
Author, co-author :
Tawfik, Christine Maher Fouad ;  Université de Liège - ULiège > HEC Liège : UER > UER Opérations : Logistique
Gendron, Bernard
Limbourg, Sabine  ;  Université de Liège - ULiège > HEC Liège : UER > UER Opérations : Logistique
Language :
English
Title :
An iterative two-stage heuristic algorithm for a bilevel service network design and pricing model
Publication date :
16 July 2021
Journal title :
European Journal of Operational Research
ISSN :
0377-2217
eISSN :
1872-6860
Publisher :
Elsevier, Amsterdam, Netherlands
Peer reviewed :
Peer Reviewed verified by ORBi
Funders :
Politique Scientifique Fédérale (Belgique) - BELSPO

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