Abstract
A heuristic based on genetic algorithms is proposed to the problem of configuring hub-and-spoke networks for trucking companies that operate less-than-truckload (LTL) services in Brazil. The problem consists of determining the number of consolidation terminals (also known as hubs), their locations and the assignment of the spokes to the hubs, aiming to minimize the total cost, which is composed of fixed and variable costs. The proposed formulation differs from similar formulations found in the literature in the sense that it allows variable scale-reduction factors for the transportation costs according to the total amount of freight between hub terminals, as occurs to less-than-truckload (LTL) freight carriers in Brazil. Our genetic algorithm approach incorporates an efficient local improvement procedure that is applied to each generated individual of the population. Computational results for benchmark problems are presented. A practical application to a real world problem involving one of the top-ten trucking companies in Brazil is also described.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
