TY - JOUR
T1 - Hub network design problem with profit optimization for time-definite LTL freight transportation
AU - Lin, Cheng Chang
AU - Lee, Shwu Chiou
N1 - Funding Information:
This research was supported by grant NSC 100-2410-H-006-068-MY3 from the National Science Council, Taiwan, R.O.C.
Publisher Copyright:
© 2018 Elsevier Ltd
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.
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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 -