Abstract
The paper describes why optimal design of depot and hub transportation networks for parcel service providers makes it necessary to develop a generalized hub location and vehicle routing model (VRM). Analogous problems occur for postal, parcel and piece goods service providers. A generalized hub location and VRM is developed which encompasses the determination of the number, locations of hubs and depots and their assigned service areas as well as the routes between the demand points and consolidation points (depots, hubs). Because this task leads to a very complex transport design problem, a heuristic solution concept has to be developed. The applicability to a case study is demonstrated; the case of completely new system configuration for Austria is considered. Management must simultaneously decide the number, location, service areas and routes from demand points to depots and vice versa (the pickup and delivery structure) as well as the number and locations of hubs and the routes of depot–hub and hub–hub transports (the hub location or line haul structure), The developed management support decision model leads for real cases to a tremendous number of some million binary variables as well as continuous variables and million of constraints.
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.
