Hub reconfiguration optimization of hub-and-spoke logistics network expansion

To improve the operation efficiency of logistics transportation network,the network expansion and hub reconfiguration optimization are carried out in the traditional hub-and-spoke logistics network. A mixed integer programming model on the hub reconfiguration optimization of the hub-and-spoke network is established considering the branch transportation cost between spoke nodes and hubs,the main transportation cost between hubs and the hub construction cost. Through analyzing the hub-and-spoke network's expansion,the reconfiguration distribution scheme is compared with the original distribution scheme from the increase of spoke nodes,the reduction of spoke nodes and the change of demand,then to decide whether to reconfigure the hubs. Through the solution of the simulation examples,the schemes are compared. The results indicate that the changes of the nodes and the flow can both increase the transportation cost,and the reconfiguration of the network can effectively reduce the logistics operation cost.