A solution method for the transfer yard location problem

A procedure is presented to solve for the most efficient forest transportation system given alternative modes of wood transportation and choices in the location of wood transfer yards. The transfer yard location problem is a special case of the facilities location problem. It is generally solved for as a linear mixed-integer problem, but for large problems, that approach presents computational difficulties because of the many integer variables required to model yard locations. The procedure proposed here consists of a screening of the feasible location nodes, followed by a breakdown of the problem that exploits its structure, and an efficient heuristic to solve for fixed charge problems. The procedure greatly reduces the computational complexity of the problem and makes it possible to solve for the most efficient design in large-scale networks and transportation plans.

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