Abstract: Systems and methods for optimizing a transportation plan for a transportation network are described. In an example, a computer system determines a forecasted demand for transporting items between a source node and a destination node of a transportation network and a set of constraints associated with a handling node of the transportation network. The computer system generates a transportation plan that comprises a network path including the handling node and a type of item handling at the handling node. In a first stage of optimization, an optimization model of the computer system selects the network path from network paths. In a second stage of optimization, the optimization model selects the type of item handling from types of item handling available at the handling node. The optimization model uses the network paths and the types of item handling as variables.