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

Cheng Chang Lin; Shwu Chiou Lee

doi:10.1016/j.tre.2018.03.007

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

Cheng Chang Lin, Shwu Chiou Lee

Research output: Contribution to journal › Article › peer-review

4 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 language	English
Pages (from-to)	104-120
Number of pages	17
Journal	Transportation Research Part E: Logistics and Transportation Review
Volume	114
DOIs	https://doi.org/10.1016/j.tre.2018.03.007
Publication status	Published - 2018 Jun

All Science Journal Classification (ASJC) codes

Business and International Management
Civil and Structural Engineering
Transportation

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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}",

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