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.
|Number of pages||17|
|Journal||Transportation Research Part E: Logistics and Transportation Review|
|Publication status||Published - 2018 Jun|
All Science Journal Classification (ASJC) codes
- Business and International Management
- Civil and Structural Engineering