Abstract
This research addresses the problem of designing a LTL logistics network over individual lanes by offering different delivery services (1-day, 2-day, 3-day). A network design is proposed which links lane-specific delivery service choices and service profitability to the hub location-allocation decisions. A hybrid-heuristic is developed which uses a search interval reduction technique with a meta-heuristic. The performance of the hybrid-heuristic is evaluated in a computational study. A factorial experiment design with real world data is used to analyze the network structure, service choices and shipment flows, which results in managerial insights about the design and operation of a LTL logistics network with differentiated services.
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