Strategic network design has significant impacts on the operational performance of transportation and telecommunications industries. The corresponding networks are typically characterized by a multicommodity ow structure where a commodity is defined by a unique origin-destination pair and an associated amount of ow. In turn, multicommodity network design and hub location models are commonly employed when designing strategic networks in transportation and telecommunications applications. In this dissertation, these two modeling approaches are integrated and generalized to address important requirements in network design for truckload transportation and long-distance telecommunications networks. To this end, we first introduce a cost effective relay network design model and then extend this base model to address the specific characteristics of these applications. The base model determines relay point (RP) locations where the commodities are relayed from their origins to destinations. In doing this, we explicitly consider distance constraints for the RP-RP and nonRPRP linkages. In truckload transportation, a relay network (RP-network) can be utilized to decrease drivers' driving distances and keep them within their domiciles. This can potentially help alleviate the high driver turnover problem. In this case, the percentage circuitry, load-imbalance, and link-imbalance constraints are incorporated into the base model to control related performance metrics that are affected by the distance constraints. When compared to the networks from other modeling approaches, the RP-network is more effective in controlling drivers' tour lengths and capable of controlling the empty mileage to low levels without adding a large amount of additional travel distance. In telecommunications, an RP-network can be beneficial in long-distance data transfers where the signals' delity must be improved/regenerated at RPs along their travel paths. For this setting, we extend the base model to include fixed link setup costs and capacities. From our computational results, our models provide better network configuration that is cost effective and facilitates a better service quality (shorter delays and better connectivity). Concerning methodology, we develop effcient exact solution algorithms based on Benders decomposition, Lagrangean decomposition, and Lagrangean relaxation. The performance of the typical solution frameworks are enhanced via numerous accelerating techniques to allow the solution of large-sized instances in reduced solution times. The accelerating techniques and solution approaches are transferable to other network design problem settings with similar characteristics.

The goal of this dissertation is to study optimization models that integrate location, production, inventory and transportation decisions for industrial products and apply the knowledge gained to develop supply chains for agricultural products (biomass). We estimate unit cost for the whole biomass-to-biofuels’ supply chain which is the per gallon cost for biofuels up till it reaches the markets. The unit cost estimated is the summation of location, production, inventory holding, and transportation costs. In this dissertation, we focus on building mathematical models for designing and managing the biomass-to-biofuels’ supply chains. The computational complexity of the developed models makes it advisable to use heuristic solution procedures. We develop a Lagrangean decomposition heuristic. In our heuristic, we divide the problem into two sub-problems, sub-problem 1 is a transportation problem and sub-problem 2 is a combination of a capacitated facility location and production planning problem. Subproblem 2 is further divided by commodities. The algorithm is tested for a number of different scenarios. We also develop a decision support system (DSS) for the biomass-to-biofuels’ supply chain. In our DSS, the main problem is divided into four easy-to-solve supply chain problems. These problems were determined based on our knowledge of supply chain and discussions with the experts from the biomass and biofuels’ sector. The DSS is coded using visual basic applications (VBA) for Excel and has a simple user interface which assists the user in running different types of supply chain problems and provides results in form of reports which are easy to understand.

This dissertation addresses the modeling and solution of mixed-integer linear multistage stochastic programming problems involving both endogenous and exogenous uncertain parameters. We propose a composite scenario tree that captures both types of uncertainty, and we exploit its unique structure to derive new theoretical properties that can drastically reduce the number of non-anticipativity constraints (NACs). Since the reduced model is often still intractable, we discuss two special solution approaches. The first is a sequential scenario decomposition heuristic in which we sequentially solve endogenous MILP subproblems to determine the binary investment decisions, fix these decisions to satisfy the first-period and exogenous NACs, and then solve the resulting model to obtain a feasible solution. The second approach is Lagrangean decomposition. We present numerical results for a process network planning problem and an oilfield development planning problem. The results clearly demonstrate the efficiency of the special solution methods over solving the reduced model directly. To further generalize this work, we also propose a graph-theory algorithm for non-anticipativity constraint reduction in problems with arbitrary scenario sets. Finally, in a break from the rest of the thesis, we present the basics of stochastic programming for non-expert users.

El plan de carga del buque debe adherirse a las instrucciones de estiba del operador del buque. Estas instrucciones especifican las características generales de cada contenedor que habrá de ccargarse. El plan de carga también debe agilizar las operaciones de transporte en la explanada de la terminal. Presentamos dos algoritmos para generar el plan de carga. El primero utiliza el método de descomposición Lagrangeana. El segundo utiliza la metaheurística tabú. Las companías navieras se enfrentan a un problema extremadamente complejo cuando intentan determinar la composición y ruteo óptimo de su flota. Presentamos un modelo y algoritmo para este problema. El modelo representa los costes operativos de una naviera. También permite la respresentación de buques con diferentes propiedades, puntos y costes de transbordo, retrasos en puerto, y la posibilidad de rechazar una solicitud de transporte. Un caso práctico explora la sensitividad de los resultados a cambios en el precio del combustible. / The vessel loading plan must comply with stowage instructions provided by the vessel operator, which specify characteristics of each container to be loaded. Additionally, the vessel loading plan should expedite transport operations in the yard. We present two vessel planning algorithms. In the first model, the vessel planning problem is formulated as a mixed integer programming (MIP) model and solved using Lagrangean relaxation and branch and bound. In the second model, a tabu metaheuristic is employed. Liner companies face a complex decision problem in determining the optimal fleet composition and routing. We present a model that captures the revenues and operating expenses of a liner company. The model allows for vessel types with different cost and operating properties; transhipment hubs; port delays; regional trade imbalances; and the possibility of rejecting transportation demand selectively. A case study explores the sensitivity of optimal fleet composition and routing to bunker costs.