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Service Network Design for Same-Day Delivery with Hub Capacity Constraints

Author

Listed:
  • Haotian Wu

    (H. Milton Stewart School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332)

  • Ian Herszterg

    (H. Milton Stewart School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332)

  • Martin Savelsbergh

    (H. Milton Stewart School of Industrial and Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332)

  • Yixiao Huang

    (SF Express (Group) Co., Ltd., Shenzhen 518048, China)

Abstract

We study a new service network design problem for an urban same-day delivery system in which the number of vehicles that can simultaneously load or unload at a hub is limited. Due to the presence of both time constraints for the commodities and capacity constraints at the hubs, it is no longer guaranteed that a feasible solution exists. The problem can be modeled on a time-expanded network and formulated as an integer program. To be able to solve real-world instances, we design and implement three heuristics: (1) an integer programming–based heuristic, (2) a metaheuristic, and (3) a hybrid matheuristic. An extensive computational study using real-world instances (with different geographies, market sizes, and service offerings) from one of China’s leading comprehensive express logistics service providers demonstrates the efficacy of the three heuristics.

Suggested Citation

  • Haotian Wu & Ian Herszterg & Martin Savelsbergh & Yixiao Huang, 2023. "Service Network Design for Same-Day Delivery with Hub Capacity Constraints," Transportation Science, INFORMS, vol. 57(1), pages 273-287, January.
    • Handle: RePEc:inm:ortrsc:v:57:y:2023:i:1:p:273-287
    DOI: 10.1287/trsc.2022.1155
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