Air Express Network Redesign of China Air Express

Jing Wang (), Jie Xu (), Jingzhi Ding () and Dongmei Wang ()
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Jing Wang: Beijing Jiaotong University
Jie Xu: Beijing Jiaotong University
Jingzhi Ding: Beijing Jiaotong University
Dongmei Wang: Beijing Jiaotong University

A chapter in LISS 2014, 2015, pp 141-146 from Springer

Abstract: Abstract China Air Express Corporation (CAE) is an enterprise that specializes in air express services. Since the company does not have its own aircrafts, it cooperates with airlines to offer air express services. The company has established branches in more than 30 cities or regions in China.The branch usually adopts direct transportation to complete express shipping, which means that there is no stop between the origin airport and the destination airport. As for the routes with less volume of business, they are unable to achieve scale economies which lead to high transportation cost. The goal of this paper is to redesign the air express network of CAE. We propose a mixed integer programming model to minimize the transportation cost, taking the delivery time and the route capacity into account. We also present an illustrative case study.

Keywords: Network redesign; Hub arc; Scale economies; Air express service; CAE (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-662-43871-8_22

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DOI: 10.1007/978-3-662-43871-8_22

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