Design of a location and transportation optimization model including quality of service using constrained multinomial logit

The design of an integrated network with decisions about tactical transportation and strategic locations is complicated and challenging. In addition to the need to consider cost issues, the consumers’ preferences will also have a significant impact on the resulting network. We propose an integrated transportation and location optimization model for designing logistic networks. Our model uses a hybrid iterative heuristic based on a genetic algorithm and a constrained multinomial logit, which includes consumers’ preferences and quality of service variables. Our results show relevant differences when considering, along with network costs, parameters related to the consumers: travel distance, congestion, waiting time, and service time.