Content area

Abstract

Transportation planning often involves not only shipment costs but also setup costs associated with deploying vehicles or transport resources. In many practical logistics operations, this setup cost does not remain constant but increases stepwise with the number of vehicles used, reflecting economies of scale and scheduling thresholds. To capture this realistic feature, this study investigates the transportation problem with stepwise costs, where total costs combine shipment-dependent variable costs and vehicle activation costs. We develop a mixed-integer programming (MIP) model to represent the problem and propose an efficient algorithm based on variable-splitting reformulation and a row-and-column generation scheme. This approach dynamically introduces only the necessary variables and constraints, enabling the solution of large-scale instances that are otherwise computationally challenging. Numerical experiments show that the method produces high-quality solutions much faster than direct MIP solvers. The results highlight the model’s practical value in optimizing fleet utilization and transportation cost structures in real logistics and supply chain systems.

Details

1009240
Business indexing term
Title
A New Bounding Procedure for Transportation Problems with Stepwise Costs
Publication title
Volume
13
Issue
22
First page
3709
Number of pages
21
Publication year
2025
Publication date
2025
Publisher
MDPI AG
Place of publication
Basel
Country of publication
Switzerland
Publication subject
e-ISSN
22277390
Source type
Scholarly Journal
Language of publication
English
Document type
Journal Article
Publication history
 
 
Online publication date
2025-11-19
Milestone dates
2025-10-03 (Received); 2025-11-14 (Accepted)
Publication history
 
 
   First posting date
19 Nov 2025
ProQuest document ID
3275541986
Document URL
https://www.proquest.com/scholarly-journals/new-bounding-procedure-transportation-problems/docview/3275541986/se-2?accountid=208611
Copyright
© 2025 by the author. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.
Last updated
2025-11-26
Database
ProQuest One Academic