Route selection of periodic multimodal transport for logistics company: An optimisation approach

Abstract

For transporting cargo from an origin to a destination, there are several routes with various transport modes, but in practice, only one route should be selected. In this regard, one of the main activities of Logistics Companies (LCs) is to select an optimal route for transporting freight. This complexity intensifies in periodic transport across multiple origins and destinations. This paper aims to develop a dual-phase mathematical model for LCs, considering cost, time, reliability, and air and noise pollution. Indeed, in periodic transport, there is a possibility of merging the cargo with the next shipment, which can lead to lower total costs. Multimodality is also another important consideration for LCs that can reduce cost and environmental impacts. The model leverages Data Envelopment Analysis in the tactical planning phase to filter efficient routes and a multi-objective model in the operational phase for optimal route selection. The proposed approach is validated by the real case of Thailand and Vietnam, which presents practical and managing insights for LCs and shippers. The study underscores the significance of route adjustments in periodic transport and provides valuable insights for LCs and shippers, emphasising the benefits of multimodal solutions in optimising freight logistics.