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Hub-and-Spoke Network Optimization with Flow Delay Cost: The Case of Goods Delivery on Urban Logistics Networks in Eastern China

Author

Listed:
  • Bangjun Wang

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

  • Guoqiang Shen

    (College of Civil Engineering and Architecture, Zhejiang University, Hangzhou 310058, China)

  • Xingshen Wang

    (International Joint Audit Institute, Nanjing Audit University, Nanjing 211815, China)

  • Yunwen Dong

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

  • Ziyu Li

    (School of Economics and Management, China University of Mining and Technology, Xuzhou 221116, China)

Abstract

With respect to a traditional point-to-point ( P-P ) network, a hub-and-spoke ( H-S ) network not only uses a smaller number of links/paths but also utilizes the scale economy advantage on consolidated flows on hub–hub links and at hubs. However, the inevitable delays through hubs have always been a critical concern. Therefore, this paper develops an H-S model considering flow delay costs and applies the model to a logistics case in Eastern China. The integer quadratic term in the model’s objective function is linearized using the algebraic method. Our model is applied to develop an H-S network for its 13-node express package delivery operation, using the particle swarm optimization (PSO) algorithm. The results show using the H-S can save more than 14.1% of the total cost annually. The model also provides an applied case to the H-S configuration, especially for urban express delivery logistics in China.

Suggested Citation

  • Bangjun Wang & Guoqiang Shen & Xingshen Wang & Yunwen Dong & Ziyu Li, 2024. "Hub-and-Spoke Network Optimization with Flow Delay Cost: The Case of Goods Delivery on Urban Logistics Networks in Eastern China," Mathematics, MDPI, vol. 12(10), pages 1-19, May.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:10:p:1496-:d:1392298
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