Optimization of two-stage port logistics network of dynamic hinterland based on bi-level programming model

The regional logistics based on port and its regional economic react on each other and develop in unison. This paper studies the two-stage port logistics network, the first one is the sea routes system between any two ports, and the second one is the network of the transportation system between each port and its economic hinterland. Based on the conditions of dynamic hinterland, the study proposes a bi-level programming model with the upper objective of the total transportation cost in the regional port group and the lower objective of the economic benefits for individual port. The competitiveness of the port, the demarcation of the hinterland, and the traffic capacity are reflected dynamically in the model, which is closer to the real system. The model is transformed into a single-programming model based on the Kuhn-Tucker theory to solve the model. Numerical tests are provided to illustrate the validity of the model and algorithm. Finally, the example is solved by Matlab. The results show that the bi-level model and the algorithm are feasible. © 2010 China Association for Science and Technology. Electronic version published by Elsevier Limited. All rights reserved.