The hub network design problem with stopovers and feeders: The case of Federal Express
This paper introduces a network planning problem called the hub network design problem with stopovers and feeders. Most, if not all, of the recent logistics research on hub-and-spokes networks has assumed that all nodes in the network are connected by direct flights to the hub. However, in the network used by the Federal Express Co., most flights to and from the hub make one or more stopovers, and many smaller cities are served by feeder aircraft which connect to other nonhub cities. This paper explores the tradeoffs and savings involved with stopovers and feeders, and develops a mixed-integer program to design the least-cost single-hub air network assuming that the hub location is already determined. The model is then applied to the western U.S. portion of the Federal Express package collection system. Comparing the optimal results to the pure hub-and-spokes network proves that substantial improvements in cost, miles flown, load factor and number of aircraft can be achieved by using stopovers and feeders in a hub network, and that it is unrealistic to assume a network with only direct flights. Comparison with the actual Federal Express network shows many similarities (which suggest that the model is capturing the important design criteria), and several differences (which indicate the model's potential for improving efficiency). The usefulness of the model for a company's comprehensive network planning and for hub location modeling is discussed.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 27 (1993)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:27:y:1993:i:1:p:1-12. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.