Abstract
The purpose of this paper is to propose an operations management methodology for a parcel to enhance competitiveness of the courier industry. Structures of Hybrid Hub-and-Spoke and Mega-hub networks for courier industry are analyzed. For deriving an optimal strategy for efficient parcel delivery, mathematical models for both network are proposed. Experiments with real-world data from a leading shipping company are conducted by optimization software to compare suitability of the networks. Two network models are compared to get managerial insights for the current and future scenarios.
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