Service Network Design for Same-Day Delivery with Hub Capacity Constraints

Haotian Wu (), Ian Herszterg (), Martin Savelsbergh () and Yixiao Huang ()
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Haotian Wu: H. Milton Stewart School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332
Ian Herszterg: H. Milton Stewart School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332
Martin Savelsbergh: H. Milton Stewart School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332
Yixiao Huang: SF Express (Group) Co., Ltd., Shenzhen 518048, China

Transportation Science, 2023, vol. 57, issue 1, 273-287

Abstract: We study a new service network design problem for an urban same-day delivery system in which the number of vehicles that can simultaneously load or unload at a hub is limited. Due to the presence of both time constraints for the commodities and capacity constraints at the hubs, it is no longer guaranteed that a feasible solution exists. The problem can be modeled on a time-expanded network and formulated as an integer program. To be able to solve real-world instances, we design and implement three heuristics: (1) an integer programming–based heuristic, (2) a metaheuristic, and (3) a hybrid matheuristic. An extensive computational study using real-world instances (with different geographies, market sizes, and service offerings) from one of China’s leading comprehensive express logistics service providers demonstrates the efficacy of the three heuristics.

Keywords: service network design; hub capacity constraints; same-day delivery; heuristics (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:57:y:2023:i:1:p:273-287

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