Multi-hub express shipment service network design with complex routes

PEREZ José Miguel, Quesada, Jean-Sébastien, Tancrez and Jean-Charles, Lange
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PEREZ José Miguel, Quesada: CORE, UCLouvain
Jean-Sébastien, Tancrez: CORE, UCLouvain

No 2019009, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

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%).

Keywords: service network design; express integrator; multiple hubs; flexible hub assignment; mixed integer programming; complex routes (search for similar items in EconPapers)
Date: 2019-03-06
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