Freight Time and Cost Optimization in Complex Logistics Networks

Figure 2

Shipping strategies of a product from a production facility (P) to a customer (C), with an option to use an external warehouse (W). Strategies are associated with freight and storage costs. Costs , , and represent the freight costs associated with the respective labelled transportation links. The cost denotes the storage cost of the material in the external warehouse (W). The number n denotes the number of times the shipment is made. Every strategy π is associated with a cost .