Papers by Cheng-Chang Lin
Transportation Research Part E: Logistics and Transportation Review, 2018
Time-definite less-than-truckload (LTL) carriers deliver small, time-guaranteed shipments for shi... more Time-definite less-than-truckload (LTL) carriers deliver small, time-guaranteed shipments for shippers. We analyze the hub network configuration under cost minimization and profit maximization behaviors. We extend a perfect inelasticity on demand with cost minimization to an elastic demand hub location design with profit maximization. We formulate this problem as a mixed-integer program that is solved using implicit enumeration with an embedded pricing subproblem. The computational results for a carrier's operational network in Taiwan showed that different behaviors result in noticeably different pricing and demand distributions. In addition, profit optimization builds a denser hub network than cost minimization to increase profit.
In a hub-and-spoke (H/S) line-haul operations network, centers (airports) are points of pickup an... more In a hub-and-spoke (H/S) line-haul operations network, centers (airports) are points of pickup and delivery (departure and arrival, respectively) while hubs are points of consolidation (transit). In practice, there are three basic H/S networks: pure; stopovers with feeders; and center directs. The pure network reduces the number of partial center-to-center loads (flights). The stopover network reduces the need for additional partial center- and hub-to-hub loads while center directs allow center-to-center direct feeds which eliminates rehandling at hubs and liberates carrying capacity. Various operational designs and implementations reduce the respective fleet size, or transportation or handling operating costs, resulting in a cost-effective operation. This paper proposed a generalized H/S network in a representation of a capacitated and directed network configuration that integrates all three types. The network design problem determines the smallest fleet size with their routes and ...
Transportation Research Part B: Methodological
The p-center flow-refueling facility location problem locates p refueling facilities to minimize ... more The p-center flow-refueling facility location problem locates p refueling facilities to minimize the maximum percentage deviation of all drivers. It is a social equity resource allocation model as opposed to a social efficiency p-maximum coverage flow-refueling model. We propose a nonlinear integer program based on link formulation and analyze its relationship with p-maximum coverage and set covering location flow-refueling problems. We develop a link-based implicit enumeration algorithm with an embedded vehicle range-constrained shortest path subproblem to optimally solve the problem. The computational results show that multiple optimal solutions may exist but that they are associated with different total trip distances. In addition, the maximum deviation may not decrease as the vehicle range or the number of refueling facilities marginally increases.
Computers Operations Research, Apr 23, 2015
Because shipments to a pair of administrative divisions are typically delivered with the same tim... more Because shipments to a pair of administrative divisions are typically delivered with the same time-in-transit service level, shippers expect that they should be charged the same price. Thus, the carrier clusters operation centers located in the same administrative division into a tier-1 zone. These zones are subsequently aggregated into a set of hierarchical zones for which the carrier defines and publishes a zone tariff chart. Zone pricing is a tactical decision that simultaneously determines the zone prices and an operational plan to use its operating capacity to maximize carrier's profit while meeting the expected service level and operational requirements. We modeled this integral-constrained concave program using link formulation and proposed an implicit enumeration embedded with Lagrangian relaxation upper bounds to determine the optimal prices and operations plan. To meet the shippers' expectation, we proved our model mathematically and demonstrated computationally, using Taiwan's largest time-definite LTL freight carrier, that zone pricing has a negative impact on carrier profit in the process of aggregation. There is a price to pay to meet the shippers? expectations that the same time-in-transit service level should be charged the same tariff.The LTL carrier?s current zone pricing is based on the straight-line distance, which does not reflect the industry's operational characteristics, hub re-handling operations and indirect routes.Clustering based on administrative division may create subsidies between OD pairs in a zone.The aggregation of ODs with different operating costs and the setting of a single price at their average operating cost may create underpricing for certain situations but overpricing for others.The higher the shortfall in operating capacity, the lower the profit for the price-elastic freight demand.
Journal of the Operational Research Society, 2001
The pure hub-and-spoke network is an efficient network structure for time-definite freight delive... more The pure hub-and-spoke network is an efficient network structure for time-definite freight delivery common carriers. Centres perform pickup and delivery functions, while hubs consolidate partial loads. This substantially reduces the transportation costs with only a small increase in the handling cost. In Taiwan, as well as in the US, carriers run their delivery operations once a day. As a result, the feeder fleet is under-utilized. This research studied the impact of multiple frequency delivery operations on the feeder fleet size. We formulated line-haul operations planning for multiple frequency delivery operations as an integer programme. We developed an α-optimal implicit enumeration algorithm and used two small networks from the third largest carrier in Taiwan for numerical testing. The results demonstrated a smaller feeder fleet size compared with the single frequency delivery operations.
Transportation Research Part A: Policy and Practice, 2003
... as the hub location. In order to serve an extensive global territory effectively, carriers mu... more ... as the hub location. In order to serve an extensive global territory effectively, carriers must construct a multi-hub network, typically with one or more hubs on each continent, called a regional air hub. In each country, airfreight ...
Transportation Research Part B: Methodological, 2011
ABSTRACT Rapid changes and complexities in business environments have stressed the importance of ... more ABSTRACT Rapid changes and complexities in business environments have stressed the importance of interactions between partners and competitors, leading supply chains to become the most important element of contemporary business environments. There is a concomitant need for foresight in describing supply chain performance in all operating environments, including those involving punctuated disruptions. Furthermore, the urban metropolis is now widely recognized to be an environment which is especially vulnerable to supply chain disruptions and for which integrated supply chain decisions can produce very substantial net benefits. Accordingly, this paper presents a dynamic supply chain network model formulated as a differential variational inequality; the model is fashioned to allow consideration of supply chain disruption threats to producers, freight carriers, and retail enterprises. The DVI is solved using a fixed-point algorithm, and a simple numerical example, introduced to illustrate how the impacts of supply chain disruptions may be quantified, is presented.
This work uses cointegration analysis to study the strength of relationships with the partners in... more This work uses cointegration analysis to study the strength of relationships with the partners in supply networks in the Taiwan automotive industry. The purposes of this paper are: (1) to examine how firms form networks and to explore whether firms in supply networks should have long-term relationships; (2) to investigate the strength of relationships with the other partners and illustrate firm behavior in supply networks. The analytical results demonstrate two findings. First, the assembly and the automotive component manufactures have long-term relationships in a supply network. Subsequently, the results of cointegration analysis illustrated firms' convergent (divergent) behavior. Sharing shareholder value, complementary resources, and sustained competitive advantage enables firms to converge to the long-term equilibrium. Partners will be amalgamated with other firms to construct a financial vision caused divergent behavior. Thus, this study provides empirical evidence of the ...
The current studies on supply chain management are limited in their analysis of the linkages betw... more The current studies on supply chain management are limited in their analysis of the linkages between firms in related industries. This study estimates the degree of linkages among designers, manufacturers and firms of testing and packaging. Significant linkage is demonstrated by the high correlation coefficients of the RSP ratio in IC industrial supply chain. But the magnitude of linkage is low by regression analysis. This paper has contributed to: (1) the development of strategic relationship by collaboration between upstream and downstream of the chain partners between firms in IC industry; and (2) to enhance robust IC supply chain by utilizing supply chain linkages from mutual cooperation.
Transportation Research Part B Methodological
Build to order (BTO) is a supply chain disruption mitigation strategy. Whereas cost minimization ... more Build to order (BTO) is a supply chain disruption mitigation strategy. Whereas cost minimization is an operational objective, the goal of the BTO manufacturer is to maximize its profit by using pricing as its competitive decision-making strategy. In this paper, we study a BTO manufacturer who simultaneously determines its product prices and designs its supply chain network to maximize its expected profit under price-dependent stochastic demand. We propose an L-shaped decomposition with complete enumeration to solve for optimality and show that the expanded master problem remains convex programming, although the optimality cuts are quadratic inequalities. The computational results demonstrate that stocking up on differentiated components and allocating modules appropriately to meet realized demand is a resilient policy that sustains variations in demand. Furthermore, the pricing decision balances the expected revenue and expected operating cost with an increase in expected profit. Th...
Transportation Research Part E: Logistics and Transportation Review, 2009
Price planning simultaneous determines the service demand (with associated prices) and an operati... more Price planning simultaneous determines the service demand (with associated prices) and an operational plan to maximize a carrier’s profit. We modeled this integral-constrained concave program in the link formulation and proposed an implicit enumeration embedded with Lagrangian Relaxation upper bounds to determine the optimal prices. Computations on Taiwan’s time-definite less-than-truckload freight market showed that the carrier needs to simultaneously re-evaluate
Cooperative coalitional games study the selection of chain partners, the formation of supply chai... more Cooperative coalitional games study the selection of chain partners, the formation of supply chains and outcome allocations. The chain value of a coalition depends on the outcome of inter-chain competition. Subsequently, chain partners may accept their payoffs or decide to defect to another coalition that has made a higher tender offer. The formation and defection continues until a stable Cournot-Nash equilibrium is reached. This is the state where no player may unilaterally defect to another coalition and earn a higher profit. We formulate the cooperative coalitional game as a variational inequality problem and propose an iterative diagonalization algorithm to determine the steady state for the game. The computational results illustrated that (1) supply-chain competition may not necessarily preserve the same level of social welfare; (2) internalization of resources and costs may distort the general competition economy; and (3) wielding the power in a supply chain does not necessarily translate into higher profits.
2009 International Conference on Machine Learning and Cybernetics, 2009
ABSTRACT We compiled an up-to-date list of logistics services offerings as the basis for our ques... more ABSTRACT We compiled an up-to-date list of logistics services offerings as the basis for our questionnaire design to study the city logistics in Chinese Capital city, Beijing. We used personal interviews to simultaneously collect credible logistics services usage and offerings information. Integrated data enabled us to analyze the market quality and growth trends. The 3PL sector in Beijing is fragmented and outsourcing is relatively infrequent. By contrast to previous country-level studies, enterprises in Beijing outsource more of value-added services, but fewer of international-related, technology services or management services, a result of the demand characteristics of the city. The managerial implications of the market quality and growth analyses suggest that the 3PLs in Beijing shall initially position themselves as local integrated logistics services providers. The short-term strategy is to improve transportation and uncomplicated valued-added services for city logistics. The medium-term strategy is to develop the real-time tracking and inter-organizational information capabilities that can integrate with basic logistics services for an effective physical operation. The findings also suggest that through the acquisitions of, and alliances and joint-ventures with local transportation and uncomplicated value-added services providers are the preferable expansion strategies into Beijing city than wholly owned subsidiary for the global 3PLs.
Transportation Research Part B: Methodological, 2011
... followed by the supply-chain design mathematical model under supply disruptions ... chain net... more ... followed by the supply-chain design mathematical model under supply disruptions ... chain network design includes strategic, tactical and operational levels of decisions. Strategically, it determinessourcing bases, manufacturing processes and distribution channel configurations. ...
Transportation Research Record, 2004
Transportation Research Record, 2004
The literature reviewed in this study may be classified into two categoriesflight frequency dete... more The literature reviewed in this study may be classified into two categoriesflight frequency determination and air network design. DeVany and Garges (1) developed a model to determine flight fre-quency for a single route without competition. The objective was to maximize the airline's profit. ...
Transportation Research Part E: Logistics and Transportation Review, 2007
Time-definite freight delivery common carriers, who pickup, consolidate and deliver small shipmen... more Time-definite freight delivery common carriers, who pickup, consolidate and deliver small shipments are a key third-party logistics service provider in the supply chains. Under uncertain demands, carrier’s multistage stochastic integer load planning in the pure hub-and-spoke line-haul operations network is to determine multistage freight paths and distribute trailers over time while meeting operational restrictions, service requirements, and balancing trailer inventory at the termination of planning horizon. We developed a heuristic approach, scenario aggregation with embedded branching on the binary variables. The numerical experiments showed a proactive operations strategy with a lower operating cost than the conventionally deterministic approach.
Transportation Research Part E: Logistics and Transportation Review, 2008
... feeders and center directs 2. Network structure 3. Network design problem 4. Solution algorit... more ... feeders and center directs 2. Network structure 3. Network design problem 4. Solution algorithm 5 ... Such a generalized network allows an evaluation of the trade-offs between different possible ... in the spacetime network, (c) the algorithmic scheme, a separable approach, and (d ...
Transportation Research Part B: Methodological, 2004
Time-definite express common carriers provide time guaranteed door-to-door express service for sm... more Time-definite express common carriers provide time guaranteed door-to-door express service for small parcel shipments. Centers pick up and deliver parcels, while hubs consolidate partial loads. Each center is connected through a secondary route to its primary hub, while hubs are mutually connected by primary routes in a hierarchical hub-and-spoke network. The carriers may dispatch large trucks/aircraft on the primary routes but utilize smaller trucks/aircraft on the secondary routes. The time-constrained hierarchical hub-and-spoke network design problem involves determining the fleet size and schedules on the primary and secondary routes to minimize the total operating cost, while satisfying the desired level of service. We developed a route-space directed network and modeled the problem as a 0-1 binary program. An implicit enumeration method with an embedded least time path subproblem was developed. The sensitivity analysis on the service level in a partial line-haul operations network for the second largest carrier in Taiwan showed that the costs are not strictly monotonically increasing with the service levels, rather they are monotonically non-decreasing according to a step function. In addition, the determination of the sort start and pickup cutoff times has a great impact on the total cost.
Transportation Research Part B: Methodological, 2001
The freight routing problem of time-de®nite common carriers is to minimize the sum of handling an... more The freight routing problem of time-de®nite common carriers is to minimize the sum of handling and transportation costs, while meeting service commitments and operational restrictions. There are two types of operational restrictions, capacity and directed in-tree rooted at each destination. Directed in-tree implicitly implies that there is a singular path for each origin±destination pair. The routing problem is an integrality constrained multi-commodity problem with side constraints. In this research, we study two approaches, the Lagrangian relaxation (LR) and implicit enumeration algorithm with e-optimality (IE-e). We use the third largest time-de®nite freight delivery common carrier in Taiwan for our numerical test. The result shows that the IE-e outperforms the LR, both quantitatively and qualitatively. In addition, two major shortcomings of the LR approach are shown: it may fail to ®nd any feasible solutions even though they exist, and it cannot determine whether the feasible set is empty or not. Ó : S 0 1 9 1 -2 6 1 5 ( 0 0 ) 0 0 0 0 8 -4 time-de®nite services with competitive prices, together with cost-eective operations are the keys to achieving maximum pro®t. To plan the most ecient operations involves the three hierarchical planning levels of strategic, tactical and operational. Long-term strategic planning sets up the delivery network. Medium-term tactical planning determines the size of various¯eets. Lastly, operational planning develops the short-term operations.
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Papers by Cheng-Chang Lin