2007•Unpublished venueRequires access

Routing Problem for Hybrid Hub-and-spoke Transportation Network: a Case Study of a LTL Carrier

Jian Zhang, Yaohua Wu, Pei Liu

Abstract

Hub-and-spoke transportation network can help Less-Than-TruckLoad carriers lower their total costs by consolidation transportation. In many cases, hybrid hub-and-spoke systems with some direct routes can be more cost-effective than pure ones. By means of analyzing a real case, this paper develops new mathematical models for a hybrid hub-and-spoke system, solving them using genetic algorithm with some strategies to determine vehicle types. At last, an average cost reduction of 2.68% is given and an optimal route planning result which forms a hybrid hub-and-spoke transportation network is described.

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Available abstract

Key concepts: Spoke-hub distribution paradigm, Computer science, Flow network, Consolidation (business), Vehicle routing problem, Network planning and design, Genetic algorithm, Operations research