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A multi-hub Express Shipment Service Network Design model with flexible hub assignment

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  • Quesada Pérez, José Miguel
  • Lange, Jean-Charles
  • Tancrez, Jean-Sébastien

Abstract

The Express Shipment Service Network Design problem consists in designing a network of flights that, at minimum cost, enables the overnight transportation of packages in vast regions. In this paper, we study its multi-hub version and develop a model in which the allocation of packages to hubs is a decision, unlike state-of-the-art approaches that suppose a predetermined allocation. Our formulation is strengthened with three families of valid inequalities and with improved forcing constraints. Extensive numerical experiments using instances provided by FedEx Express Europe show the efficiency of our flexible hub assignment model, particularly compared to fixed hub assignment approaches.

Suggested Citation

  • Quesada Pérez, José Miguel & Lange, Jean-Charles & Tancrez, Jean-Sébastien, 2018. "A multi-hub Express Shipment Service Network Design model with flexible hub assignment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 116-131.
    • Handle: RePEc:eee:transe:v:120:y:2018:i:c:p:116-131
    DOI: 10.1016/j.tre.2018.10.009
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    Cited by:

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    2. Li, Siqiao & Zhu, Xiaoning & Shang, Pan & Li, Tianqi & Liu, Wenqian, 2023. "Optimizing a shared freight and passenger high-speed railway system: A multi-commodity flow formulation with Benders decomposition solution approach," Transportation Research Part B: Methodological, Elsevier, vol. 172(C), pages 1-31.
    3. Martin, Florian & Hemmelmayr, Vera C. & Wakolbinger, Tina, 2021. "Integrated express shipment service network design with customer choice and endogenous delivery time restrictions," European Journal of Operational Research, Elsevier, vol. 294(2), pages 590-603.
    4. Wang, Zujian & Qi, Mingyao, 2019. "Service network design considering multiple types of services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 1-14.
    5. Yıldız, Barış & Savelsbergh, Martin, 2022. "Optimizing package express operations in China," European Journal of Operational Research, Elsevier, vol. 300(1), pages 320-335.

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