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 |
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Pages (from-to) | 104-120 |
Number of pages | 17 |
Journal | Transportation Research Part E: Logistics and Transportation Review |
Volume | 114 |
DOIs | |
Publication status | Published - 2018 Jun |
All Science Journal Classification (ASJC) codes
- Business and International Management
- Civil and Structural Engineering
- Transportation