Hub relay network design for daily driver routes. Issue 19 (2nd October 2019)

• Record Type: Journal Article
• Authors: Hu, Zhengyang; Askin, Ronald G.; Hu, Guiping
• Is Part Of: International journal of production research. Volume 57:Issue 19(2019)
• Page Start: 6130
• Page End: 6145
• Publication Date: 2019-10-02
• Subjects: physical internet -- network design -- truckload shipments -- stochastic programming -- valid inequalities; Factory management -- Periodicals; 658.57
• DOI: 10.1080/00207543.2019.1571253
• Languages: English
• ISSNs: 0020-7543

Abstract

Abstract : Hub-based relay networks for long haul trucking offer an opportunity to improve the work–life balance of drivers while simultaneously supporting faster delivery through near-continuous flow of containers from source to destination. In this paper, we develop a model for deciding hub location and sizing along with the routing of loads. Costs of hub construction and operation, transportation and penalties for multi-day driver trips are included. Both deterministic and two-stage stochastic programming models have been formulated in this paper. The goal is to determine the optimal hub and route decisions so that overall cost is minimised. A case study on the highway network for the Western United States demonstrates the computational tractability of the approach along with the importance of considering demand uncertainty.