2014Journal of Railway Science and EngineeringRequires access

Routing optimization of uncapacitated mixed hub-and-spoke network for less-than-truckload transportation

Fang Xiaopin

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Abstract

In order to effectively arrange network operation for a transportation company engaged in nationwide less-than-truckload transportation services on a physical hub-and-spoke network,a mixed integer linear programming model( MILP) was established to optimize the mixed hub-and-spoke operational network. The model was to minimize the total transportation costs and the variable freight transfer costs. The result shows that, the targeted cost and the total vehicle trips of the mixed hub-and-spoke network are respectively 8. 0% and 15. 3% less than that of the pure hub-and-spoke. The calculation time exponentially increases when the number of hubs is increasing with constant data scale. This model shows good adaption for the changing hub number and location,and the OD structure of the network,which can be used to support the operational network decision making for logistics companies.

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In order to effectively arrange network operation for a transportation company engaged in nationwide less-than-truckload transportation services on a physical hub-and-spoke network,a mixed integer linear programming model( MILP) was established to optimize the mixed hub-and-spoke operational network. The model was to minimize the total transportation costs and the variable freight transfer costs. The result shows that, the targeted cost and the total vehicle trips of the mixed hub-and-spoke network are respectively 8. 0% and 15. 3% less than that of the pure hub-and-spoke. The calculation time exponentially increases when the number of hubs is increasing with constant data scale. This model shows good adaption for the changing hub number and location,and the OD structure of the network,which can be used to support the operational network decision making for logistics companies.

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Available abstract

In order to effectively arrange network operation for a transportation company engaged in nationwide less-than-truckload transportation services on a physical hub-and-spoke network,a mixed integer linear programming model( MILP) was established to optimize the mixed hub-and-spoke operational network. The model was to minimize the total transportation costs and the variable freight transfer costs. The result shows that, the targeted cost and the total vehicle trips of the mixed hub-and-spoke network are respectively 8. 0% and 15. 3% less than that of the pure hub-and-spoke. The calculation time exponentially increases when the number of hubs is increasing with constant data scale. This model shows good adaption for the changing hub number and location,and the OD structure of the network,which can be used to support the operational network decision making for logistics companies.

Key concepts: Spoke-hub distribution paradigm, Integer programming, Routing (electronic design automation), TRIPS architecture, Transport engineering, Operations research, Linear programming, Total cost

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