Hub-and-Spoke Network Optimization with Flow Delay Cost: The Case of Goods Delivery on Urban Logistics Networks in Eastern China

With respect to a traditional point-to-point (P-P) network, a hub-and-spoke (H-S) network not only uses a smaller number of links/paths but also utilizes the scale economy advantage on consolidated flows on hub–hub links and at hubs. However, the inevitable delays through hubs have always been a cri...

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Bibliographic Details
Published in:Mathematics (Basel) 2024-05, Vol.12 (10), p.1496
Main Authors: Wang, Bangjun, Shen, Guoqiang, Wang, Xingshen, Dong, Yunwen, Li, Ziyu
Format: Article
Language:English
Subjects:
Algorithms
Costs
Design
Economies of scale
Efficiency
flow delay cost
hub location and allocation
hub-and-spoke network
Hubs
Integer programming
Linear programming
Logistics
Network management systems
optimization
Particle swarm optimization
Shipment of goods
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Summary:With respect to a traditional point-to-point (P-P) network, a hub-and-spoke (H-S) network not only uses a smaller number of links/paths but also utilizes the scale economy advantage on consolidated flows on hub–hub links and at hubs. However, the inevitable delays through hubs have always been a critical concern. Therefore, this paper develops an H-S model considering flow delay costs and applies the model to a logistics case in Eastern China. The integer quadratic term in the model’s objective function is linearized using the algebraic method. Our model is applied to develop an H-S network for its 13-node express package delivery operation, using the particle swarm optimization (PSO) algorithm. The results show using the H-S can save more than 14.1% of the total cost annually. The model also provides an applied case to the H-S configuration, especially for urban express delivery logistics in China.
ISSN:2227-7390
2227-7390
DOI:10.3390/math12101496