Hub-and-Spoke Network Optimization with Flow Delay Cost: The Case of Goods Delivery on Urban Logistics Networks in Eastern China

Bangjun Wang (), Guoqiang Shen, Xingshen Wang, Yunwen Dong and Ziyu Li
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Bangjun Wang: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Guoqiang Shen: College of Civil Engineering and Architecture, Zhejiang University, Hangzhou 310058, China
Xingshen Wang: International Joint Audit Institute, Nanjing Audit University, Nanjing 211815, China
Yunwen Dong: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China
Ziyu Li: School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China

Mathematics, 2024, vol. 12, issue 10, 1-19

Abstract: With respect to a traditional point-to-point ( P-P ) network, a hub-and-spoke ( H-S ) network not only uses a smaller number of links/paths but also utilizes the scale economy advantage on consolidated flows on hub–hub links and at hubs. However, the inevitable delays through hubs have always been a critical concern. Therefore, this paper develops an H-S model considering flow delay costs and applies the model to a logistics case in Eastern China. The integer quadratic term in the model’s objective function is linearized using the algebraic method. Our model is applied to develop an H-S network for its 13-node express package delivery operation, using the particle swarm optimization (PSO) algorithm. The results show using the H-S can save more than 14.1% of the total cost annually. The model also provides an applied case to the H-S configuration, especially for urban express delivery logistics in China.

Keywords: flow delay cost; hub-and-spoke network; hub location and allocation; optimization (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2024
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