Integrated Models of Facility Location and Network Design

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The increased complexity of modern manufacturing and supply chain networks has drawn attention to the importance of logistics and transportation in engineering. Logistics deals with the efficient flow of goods from their points of production to their points of consumption. It involves the integration of several activities such as inventory, transportation, warehousing, and material handling. Among these activities, transportation is the most important in terms of costs and plays a crucial role in the social, political and economic activities of a country. For instance, in Canada the transportation industry accounted for 4.7 % of the GDP in 2009 and thus, contributed $55.8 billion to the economy (see Statistics Canada). Many companies are thus turning their attention to the optimization of their logistics and transportation networks to ensure that the products are delivered at the right time, in the right place, and at the least possible cost. The aim of this research program is to further the study and development of integrated models of facility location and network design, which lie at the heart of strategic design planning in transportation systems, namely in the airline and trucking industries. This type of decision models are also of vital interest to telecommunication firms, given the explosive growth of modern computer and voice communication networks. An important part of this program will focus on the study of new network hub location models that incorporate additional features of real applications such as congestion and reliability issues, the effects of uncertainty of demands and transportation costs, and the relaxation of classical assumptions. These hub networks are widespread used by international and national airline companies such as Air Canada, Air Transat, and WestJet. Network hub location is also a central problem for many express delivery and post operator companies such as FedEx, UPS, and Canada Post Corporation. This research program has the potential to make substantial contributions to the solution of complex problems of high practical relevance. It will also contribute to the development of innovating methodologies in the general fields of operations research and optimization.