The Service Network Design and Routign Problem (SNDRP) integrates long-haul and local transportation planning in a logistics hub network. Delivery paths are to be planned for a set of commodities, via a pre-defined set of routes in the service network. Each commodity has to be picked up and delivered in time, while the total transportation and consolidation cost should be minimized.

We extend the Dynamic Discretization Discovery algorithm that has been recently proposed to solve the Service Network Design problem. We show that the SNDRP can be solved with a very thin time discrtization on a time-space network. A case study in the retail area is used to illustrate how our approach can help decision makers to design and operate collaborative transportation networks.