Intermodal logistics: The interplay of financial, operational and service issues

This research addresses strategic planning for an interregional, hub based, intermodal logistics network operated by a logistics service provider. A tabu search meta-heuristic is used to solve a mathematical optimization model that extends the p-hub median model for interacting hub location-allocation problems to the domain of intermodal logistics. An empirical study based on a subset of US freight flows shows that intermodal logistics networks differ significantly from traditional over-the-road logistics networks in their hub locations, network structure, and their use of direct and inter-hub shipments. Furthermore, intermodal logistics networks are more sensitive to changes in service requirements and costs.