Hub network design problem with profit optimization for time-definite LTL freight transportation

Cheng Chang Lin, Shwu Chiou Lee

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Time-definite less-than-truckload (LTL) carriers deliver small, time-guaranteed shipments for shippers. We analyze the hub network configuration under cost minimization and profit maximization behaviors. We extend a perfect inelasticity on demand with cost minimization to an elastic demand hub location design with profit maximization. We formulate this problem as a mixed-integer program that is solved using implicit enumeration with an embedded pricing subproblem. The computational results for a carrier's operational network in Taiwan showed that different behaviors result in noticeably different pricing and demand distributions. In addition, profit optimization builds a denser hub network than cost minimization to increase profit.

Original languageEnglish
Pages (from-to)104-120
Number of pages17
JournalTransportation Research Part E: Logistics and Transportation Review
Volume114
DOIs
Publication statusPublished - 2018 Jun

Fingerprint

Freight transportation
profit maximization
Profitability
profit
pricing
demand
costs
Costs
Taiwan
time
Profit
Network design
Cost minimization
Hub
Pricing
Profit maximization

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

Cite this

@article{562eb31fc46b44e1b04716434261f93e,
title = "Hub network design problem with profit optimization for time-definite LTL freight transportation",
abstract = "Time-definite less-than-truckload (LTL) carriers deliver small, time-guaranteed shipments for shippers. We analyze the hub network configuration under cost minimization and profit maximization behaviors. We extend a perfect inelasticity on demand with cost minimization to an elastic demand hub location design with profit maximization. We formulate this problem as a mixed-integer program that is solved using implicit enumeration with an embedded pricing subproblem. The computational results for a carrier's operational network in Taiwan showed that different behaviors result in noticeably different pricing and demand distributions. In addition, profit optimization builds a denser hub network than cost minimization to increase profit.",
author = "Lin, {Cheng Chang} and Lee, {Shwu Chiou}",
year = "2018",
month = "6",
doi = "10.1016/j.tre.2018.03.007",
language = "English",
volume = "114",
pages = "104--120",
journal = "Transportation Research, Part E: Logistics and Transportation Review",
issn = "1366-5545",
publisher = "Elsevier Limited",

}

TY - JOUR

T1 - Hub network design problem with profit optimization for time-definite LTL freight transportation

AU - Lin, Cheng Chang

AU - Lee, Shwu Chiou

PY - 2018/6

Y1 - 2018/6

N2 - Time-definite less-than-truckload (LTL) carriers deliver small, time-guaranteed shipments for shippers. We analyze the hub network configuration under cost minimization and profit maximization behaviors. We extend a perfect inelasticity on demand with cost minimization to an elastic demand hub location design with profit maximization. We formulate this problem as a mixed-integer program that is solved using implicit enumeration with an embedded pricing subproblem. The computational results for a carrier's operational network in Taiwan showed that different behaviors result in noticeably different pricing and demand distributions. In addition, profit optimization builds a denser hub network than cost minimization to increase profit.

AB - Time-definite less-than-truckload (LTL) carriers deliver small, time-guaranteed shipments for shippers. We analyze the hub network configuration under cost minimization and profit maximization behaviors. We extend a perfect inelasticity on demand with cost minimization to an elastic demand hub location design with profit maximization. We formulate this problem as a mixed-integer program that is solved using implicit enumeration with an embedded pricing subproblem. The computational results for a carrier's operational network in Taiwan showed that different behaviors result in noticeably different pricing and demand distributions. In addition, profit optimization builds a denser hub network than cost minimization to increase profit.

UR - http://www.scopus.com/inward/record.url?scp=85045619460&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85045619460&partnerID=8YFLogxK

U2 - 10.1016/j.tre.2018.03.007

DO - 10.1016/j.tre.2018.03.007

M3 - Article

AN - SCOPUS:85045619460

VL - 114

SP - 104

EP - 120

JO - Transportation Research, Part E: Logistics and Transportation Review

JF - Transportation Research, Part E: Logistics and Transportation Review

SN - 1366-5545

ER -