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Release Time Scheduling and Hub Location for Next-Day Delivery

Author

Listed:
  • Hande Yaman

    (Department of Industrial Engineering, Bilkent University, 06800 Ankara, Turkey)

  • Oya Ekin Karasan

    (Department of Industrial Engineering, Bilkent University, 06800 Ankara, Turkey)

  • Bahar Y. Kara

    (Department of Industrial Engineering, Bilkent University, 06800 Ankara, Turkey)

Abstract

Inspired by a real-life problem faced by one of the largest ground-based cargo companies of Turkey, the current study introduces a new facet to the hub location literature. The release time scheduling and hub location problem aims to select a specified number of hubs from a fixed set of demand centers, to allocate each demand center to a hub, and to decide on the release times of trucks from each demand center in such a way that the total amount of cargo guaranteed to be delivered to every potential destination by the next day is not below a threshold and the total routing cost is minimized. The paper introduces integer programming models to solve this problem in the special cases when the cargo uniformly arrives to each demand center during the day and the more realistic pattern of when the cargo arrivals exhibit a piecewise linear form. Several classes of valid inequalities are proposed to strengthen the formulations. Extensions with multiple service levels and discrete sets for release times are also discussed. Computational results show the computational viability of the models under realistic scenarios as well as the validity of the proposed problems in answering several interesting questions from the cargo sector's perspective.

Suggested Citation

  • Hande Yaman & Oya Ekin Karasan & Bahar Y. Kara, 2012. "Release Time Scheduling and Hub Location for Next-Day Delivery," Operations Research, INFORMS, vol. 60(4), pages 906-917, August.
    • Handle: RePEc:inm:oropre:v:60:y:2012:i:4:p:906-917
    DOI: 10.1287/opre.1120.1065
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    References listed on IDEAS

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    5. Boysen, Nils & de Koster, René & Weidinger, Felix, 2019. "Warehousing in the e-commerce era: A survey," European Journal of Operational Research, Elsevier, vol. 277(2), pages 396-411.
    6. Masaeli, Mobina & Alumur, Sibel A. & Bookbinder, James H., 2018. "Shipment scheduling in hub location problems," Transportation Research Part B: Methodological, Elsevier, vol. 115(C), pages 126-142.
    7. Nils Boysen & Konrad Stephan & Felix Weidinger, 2019. "Manual order consolidation with put walls: the batched order bin sequencing problem," EURO Journal on Transportation and Logistics, Springer;EURO - The Association of European Operational Research Societies, vol. 8(2), pages 169-193, June.
    8. Alumur, Sibel A. & Yaman, Hande & Kara, Bahar Y., 2012. "Hierarchical multimodal hub location problem with time-definite deliveries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1107-1120.
    9. Vijoleta Vrhovac & Stana Vasić & Stevan Milisavljević & Branislav Dudić & Peter Štarchoň & Marina Žižakov, 2023. "Measuring E-Commerce User Experience in the Last-Mile Delivery," Mathematics, MDPI, vol. 11(6), pages 1-21, March.
    10. Boysen, Nils & Fedtke, Stefan & Weidinger, Felix, 2018. "Optimizing automated sorting in warehouses: The minimum order spread sequencing problem," European Journal of Operational Research, Elsevier, vol. 270(1), pages 386-400.
    11. Alumur, Sibel A. & Campbell, James F. & Contreras, Ivan & Kara, Bahar Y. & Marianov, Vladimir & O’Kelly, Morton E., 2021. "Perspectives on modeling hub location problems," European Journal of Operational Research, Elsevier, vol. 291(1), pages 1-17.
    12. Bitterling, Cristian & Koreis, Jonas & Loske, Dominik & Klumpp, Matthias, 2022. "Comparing manual and automated production and picking systems," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Jahn, Carlos & Blecker, Thorsten & Ringle, Christian M. (ed.), Changing Tides: The New Role of Resilience and Sustainability in Logistics and Supply Chain Management – Innovative Approaches for the Shift to a New , volume 33, pages 327-350, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    13. Weidinger, Felix & Boysen, Nils & Schneider, Michael, 2019. "Picker routing in the mixed-shelves warehouses of e-commerce retailers," European Journal of Operational Research, Elsevier, vol. 274(2), pages 501-515.
    14. Boysen, Nils & Briskorn, Dirk & Fedtke, Stefan & Schmickerath, Marcel, 2019. "Automated sortation conveyors: A survey from an operational research perspective," European Journal of Operational Research, Elsevier, vol. 276(3), pages 796-815.
    15. Boysen, Nils & de Koster, René & Füßler, David, 2021. "The forgotten sons: Warehousing systems for brick-and-mortar retail chains," European Journal of Operational Research, Elsevier, vol. 288(2), pages 361-381.

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