Capacity planning to cope with demand surges in fourth-party logistics networks under chance-constrained service levels

Songchen Jiang, Min Huang, Yunan Liu, Yuxin Zhang, Xingwei Wang

Abstract: Highlights•A novel model for capacity planning in 4PL networks under demand surges is proposed.•A chance-constrained model with MILP reformulation using cell-and-bound is developed.•An efficient LEGO framework is developed for solving large-scale 4PLN problems.•Management insights for logistics capacity planning under demand surges are provided.