Abstract: We optimize business reorganization for railway freight hub based on the basic requirement of goods real name system. We initially determine the subordinate hierarchical decisionmaking relationship between railway decisionmaking departments and its clients, and then construct a bilevel programming model for business reorganization of railway freight hub. The objective of the upper model is to minimize the total freight turnover volume and business dispersion rate in a freight hub. The goal of the lower model is to minimize client freight cost. We then devise a heuristic algorithm to solve the model by constructing a reaction function between the upper and the lower decision variables. We eventually design an example to verify the feasibility of the model and the algorithm. Results show that business dispersion rate of a reorganized freight station decreases by 72.5%, and 40.2% for freight turnover volume, but client freight cost only increases by 8.4%.

Key words: railway freight transportation, bi-level programming, railway freight hub, business reorganization, heuristic algorithm