Parcel distribution timetabling problem

Abstract

In this paper we propose a model to generate an effective timetable for time definite parcel distribution companies operating a hierarchical hub-and-spoke network. The model, referred to as parcel distribution timetabling problem, provides the departure times from each serviced city and each servicing facility in order to minimize the travel times of all shipments from their origin cities to their destination cities. Although the problem is faced by every parcel distribution company, it is rarely addressed in the literature. There is no evidence that parcel distribution companies, including the international ones, are developing operational research models in generating their timetables. The application of the model to a real-world case led to a decrease of more than 11% in the average travel time of the shipments. The company was even more delighted by the rapidity of the model in generating the timetable; this task that used to take weeks is decreased to just minutes.