A two-stage robust model for express service network design with surging demand

X. Zhang and X. Liu

European Journal of Operational Research, 2022, vol. 299, issue 1, 154-167

Abstract: In the periods following sales on online shopping carnivals, demand for express transportation is expected to precipitously surge within a short time, potentially causing express system overload and delivery delays. In this study, we address a service network design problem of a hub-and-spoke structured express transportation network during periods of surging demands. We consider a new strategy of upgrading existing spokes into temporary hubs to expand the network capacity with low costs. We propose a two-stage bi-objective robust model based on a time-space network to integrate the spoke-upgrading selection, service-scheduling, and vehicle-routing for designing an express service network that is both efficient and economic. To solve the model, we develop an enhanced column-and-constraint generation algorithm. Finally, a case study of a real express logistics company in China is demonstrated to validate the effectiveness of the proposed strategy and to offer decision support in real problems.

Keywords: Logistics; Express service network design; Capacity expansion; Robust optimization; Column and constraint generation (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:299:y:2022:i:1:p:154-167

DOI: 10.1016/j.ejor.2021.06.031

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