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A Location-Allocation Model for Logistics Integration Centers Subjected to Peer-to-Peer Demands: A Case Study of Soybean Transportation In Brazil

Transportation planning, in Brazil, has been changed from a segmented and individual perspective to a systemic and integrated one. However it was just in 2007 that this new governmental orientation became clear, when the National Plan of Logistics and Transportation (Plano Nacional de Logistica e Transporte – PNLT) was released. The main objective of this governmental plan is to provide a suitable modal split balance of interurban cargo transportation before than 2023. Then, it indicates investments in transport infrastructure, especially to waterway and rail modes. In 2009, this plan was revised and the planning horizon time was extended to 2031 (Ministerio dos Transportes, 2007; 2012). However transportation sector continues suffering with high logistics costs which reflect in less competitiveness to others sectors of national economy. A Brazilian product can be 37% more expansive than the same one produced in Germany (ABIMAQ, 2013) while a manufactured good can have a price 38% higher than the same one imported (FIESP, 2013). Besides, companies can spend until 1% of their income due to logistic inefficiency (DECOMTEC, 2012). Thus, logistics integration centers - CILs can be a choice to achieve an efficient intermodal transportation. Nevertheless, so as it can proportionate cost reductions, it must be located in a strategic place of national territory, considering the freight transport between origins and destinations. This paper aims to propose a mathematical model to point out the best location to CILs, considering the minimization of the total cost of transportation and respecting peer-to-peer demands. Besides, the authors select soybean's origin-destination (O/D) matrix in order to evaluate if and how much the costs would decrease if the CILs were used as a point of modal shift from road to means of transport with higher capacity and, possibly, higher efficiency. Soybean was chosen since it is one of the most profitable agro commodities exported by Brazil (MAPA, 2015). The database, transportation network and other information used in PNLT were used in order to apply the mathematical model proposed. Due to the amount of data required, a C++ code was developed and a commercial solver (CPLEX) was used to find out the optimal solution to this problem. With the mathematical model, the authors can show the best locations to soybean's CILs, how many tonnes of this commodity would be moved by each logistic structure, the total transportation cost and how much money was saved with modal shift promoted by CILs. The authors highlight that location and allocation problems are comprised in an important area of operational research field (Macharis e Botekoning, 2004; Klose e Drexl, 2005), being considering an np-hard problem. So, a large bibliography research was done in order to understand the existent models and how to deal with the Brazilian freight transportation context. It paper is relevant considering the fact that can help the government to establish future policies to this sector, besides it can contribute to the achievement of PNLT’s goals, helping decision-makers to direct the investments in this sector in a more appropriate way.