Optimizing complex logistics systems with approximative consideration of short-term costs

Abstract

This paper provides an approach which optimizes complex logistics networks strategically, considering the total operational and tactical costs. Real-world-sized instances of models which consider the costs of all time-horizons exactly are very complex and very difficult to solve. Beside this it does not make much sense to completely plan operational details (that will never be executed later on). So, we formulate a model which uses an appropriate approximation of short-term costs. This makes the model and the solution process much easier. But the model turns out to be very complex, nevertheless. So we introduce a heuristic to solve it and to gain a satisfactory solution. © 2011 Springer-Verlag.