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

Cheng Chang Lin, Shwu Chiou Lee

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

All Science Journal Classification (ASJC) codes

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

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