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Multi-hub express shipment service network design with complex routes

Author

Listed:
  • QUESADA PEREZ José Miguel,

    (CORE, UCLouvain)

  • TANCREZ Jean-Sébastien,

    (CORE, UCLouvain)

  • LANGE Jean-Charles,

Abstract

The Express Shipment Service Network Design (ESSND) problem consists in defining a network of flights that enables the overnight flow of express packages from their origins to their destinations at minimum cost. This problem is normally solved considering only one-leg, multip-leg and ferry routes. Assessing the value of more complex route types is an open question of academic and practical importance. In this article, we present a mixed integer programming model that includes five types of complex routes: two-hub, transload, direct, inter-hub and early routes. We assess their economic impact by performing many experiments built from an instance provided by FedEx Express Europe. Inter-hub and early routes have the best performance, with significant average savings (from 0.5% to 3.5%).

Suggested Citation

  • QUESADA PEREZ José Miguel, & TANCREZ Jean-Sébastien, & LANGE Jean-Charles,, 2019. "Multi-hub express shipment service network design with complex routes," LIDAM Discussion Papers CORE 2019009, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2019009
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2019.html
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    Keywords

    service network design; express integrator; multiple hubs; flexible hub assignment; mixed integer programming; complex routes;
    All these keywords.

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