Service network design and planning two-tier city logistics systems

Freight transportation and logistics are vital for the economy in general and cities in particular. They also yield a number of negative impacts in terms of congestion, pollution, safety, etc.. City Logistics proposes new concepts and operational and business models to alleviate these negative impacts and foster an efficient and sustainable transportation system. We will review these issues, concepts and models. We will focus in particular on two-tier systems appropriate for large cities and the challenges to plan and manage such transportation systems. Service network design is a well-known methodology for planning consolidation-based transportation systems. Particular developments are required in the context of City Logistics, particularly in relation to the routing component of operations, the collaborative nature of the carriers involved, and the uncertainty in demand. We will briefly recall the service network design methodology and discuss recent results for tactical planning of two-tier City Logistics systems.