Hub Operations Research Articles

Logistics digitalization and the third-party logistics blue-collar employees performance: the role of paradoxical leader behavior

PurposeThis study examines the impact of third-party logistics (3PL) supervisors’ paradoxical leader behavior (PLB) on the relationship between logistics digitalization and 3PL blue-collar employee performance. 3PLs often lag in digitalization due to blue-collar employees struggling with learning paradoxes, i.e. the tension between abandoning the known methods in favor of new ones. In such situations, 3PL supervisors play a crucial role in helping their subordinates manage these tensions. By incorporating a paradox theory lens, we propose that 3PL supervisors’ PLB acts as a supportive tool, motivating blue-collar employees to address learning paradoxes, thereby improving their operational performance.Design/methodology/approachWe conduct a scenario-based behavioral experiment in which participants assume the role of a package sorter in a fictional 3PL hub setting. Participants engage in a custom-designed package sorting game that mimics a real-life hub sorting operation.FindingsThe results indicate that digitalization combined with supervisors’ PLB significantly improves blue-collar employee performance, with the most substantial improvement observed in the high digitalization and high PLB condition than all other conditions.Originality/valueOur research examines the impact of digitalization on blue-collar employees’ performance through a paradox theory lens. We demonstrate that 3PLs can maximize digitalization benefits by ensuring supervisors exhibit high PLB. Also, we introduce a package sorting game for researchers to conduct experiments related to digitalization and hub operations.

Designing a resilient hydrogen hub under disruption risks and non-stationary demand distribution

Hydrogen is a viable and sustainable energy alternative. It offers a solution to mitigate greenhouse gases and fortify energy security. However, its supply chain faces many uncertainties and challenges, including demand fluctuations and sourcing disruptions. This paper introduces an innovative two-stage stochastic model to plan hydrogen hub procurement, storage, and sales. In the first stage, the model optimises the order quantities by considering real-time inventory levels. This forward-thinking strategy aims to improve operational efficiency and adaptability. In the second stage, the model refines the hub operations by incorporating supplier resilience, exploration of alternative markets, emission considerations from each source, and terminal connection planning. Integrating these elements contributes to a comprehensive framework for robust hydrogen hub scheduling. This paper adopts a Benders decomposition algorithm to address the mathematical complexity of the model. This approach is necessary to ensure a smooth and efficient computational process. Empirical testing and validation of the developed model, along with the robustness of the solution methodology, emphasise its effectiveness in handling uncertainties and disruptions. This paper contributes to the existing literature by shedding light on critical facets of disruption management, supplier resilience, and emissions reduction within the hydrogen supply chain design.

Developing a shared understanding of translational science within CTSA hubs through facilitated retreats: A case study.

Translation of critical and broadly impactful health advancements is stymied by insufficient scientific scrutiny of barriers and roadblocks in the process. The Clinical & Translational Science Award (CTSA) funding opportunity announcement released in July 2021 makes clear the distinction between translational research and translational science (TS) and urges a shift from the former to the latter. This represents a significant shift in the overall scientific direction of the CTSA program and necessitates corresponding shifts in CTSA hub operations. To better support TS, the Team Science Core of the Duke CTSA hub designed and facilitated a virtual retreat for hub personnel that (1) enabled organizational learning about TS and (2) identified anticipated challenges and opportunities. A post-retreat survey was utilized to assess the degree to which the retreat met its stated goals. Our survey received a 62% response rate; 100% of respondents would recommend the session to others. Respondents also reported gains in all areas assessed, with evidence for greater understanding of TS and increased perspective of the value and relevance of TS. In this paper, we provide a roadmap for designing and implementing facilitated TS retreats, which we argue is a key step in TS capacity building through workforce development.

RETRACTED: Optimum operation of energy hub by considering renewable resources by considering risk tolerance and risk taking with Teaching–learning-based optimization

Amidst growing concerns over climate change, the conventional energy landscape faces critical challenges associated with fossil fuel usage. In response, this study explores alternative approaches by investigating an energy hub system leveraging wind turbine-generated power. This hub integrates seamlessly with electricity and natural gas grids, offering a comprehensive energy supply encompassing electricity, natural gas, and thermal loads. The research strategy encompasses a multi-pronged approach. A Time-of-Use (TOU) load management program optimizes the distribution of electrical and thermal loads. To address the unpredictability of wind speed, the information gap decision theory (IGDT) is introduced to manage risk and deviations effectively. The central objective involves optimizing the energy hub's operations, focusing on minimizing operational costs and emissions. To address this intricate challenge, the study employs the Teaching–Learning-Based Optimization (TLBO) method. This advanced technique concurrently optimizes cost and environmental impact, exemplifying its efficacy in the energy hub context. The research culminates in demonstrating the TLBO algorithm's swift convergence, highlighting its aptitude for addressing complex cost and emission optimization dynamics. In sum, this study offers innovative insights into sustainable energy systems, where economic and environmental considerations converge harmoniously.

Blockchain Technology in Supply Chains of Transport Hubs in the People’s Republic of China

Efficient cargo transportation at major transport hubs its management is critical to global trade. Existing systems for organising cargo transportation do not provide traceability, transparency, information security and immutability of data stored and exchanged during various operational processes. Consequently, this negatively affects the performance of transport hubs. The use of digital applications of information and communication technology (ICT) in the transport industry can lead to highly automated processes and more cost-effective solutions. Cargo transportation requires the use of real-time data exchange between the various stakeholders involved in the process. Traditional ICTbased logistics systems use a centralised architecture to allocate and process data and services. However, centralised logistics systems cannot provide secure real-time data access, operational visibility, and trust between participating organisations. Automating various functions of transport hubs with the help of the Internet of Things (IoT) and cloud computing can adequately improve the performance of transport hub operations. These operations include automation of the vehicle interface, container yards, intra-port logistics, and the terminal reception area. The objective of the research is to increase the efficiency of organisational and functional activities of transport hubs through digitalisation. Significant are the methods of applying an integrated approach that combines confirmation of feasibility of participation of a port facility in servicing the cargo traffic in terms of delivery «just in time» and of economic feasibility of participation of the facility in the channel of cargo flows to save operating costs. Possibilities for improving the process are considered from the point of view of integration of information exchange between different participants using end-to-end technologies in transport hubs, namely, the blockchain concept, to optimise operations by integrating and exchanging information between participants in the transportation process.

Glocalizing creative hub concept for malaysian creative city development: A conceptual review

The creative hub concept is gaining popularity globally as a tool within the creative economy to generate socio-economic and cultural values for societal and community development. Though the concept is nascent and the creative hub itself can be manifested in variegated forms, the notion is oftentimes linked to urban development particularly the way creative hubs are found to be subsumed and contribute towards the growth of creative industries en route the formation of a creative city. Against this backdrop, this paper aims to explore the creative hub concept and the way this global concept it is being understood, adopted and adapted locally amidst Malaysian local nuances. Based on secondary data sources, a systematic literature review was conducted to review global definitions, concepts, examples and illustrate how creative hubs are linked to creative city development and sustainable urban development. Literature review based on similar themes for the Malaysian context showed that the creative hub concept is also variegated, and each hub is shaped by the initiators, funding model and formation purpose of either commercial, social or culture and artistic. The paper concludes that reconceptualization of Malaysian creative hubs is timely and apt by taking into consideration also elements like location, culture-specificity and the influence of ICT as the creative hub concept, its form and operations morph and navigate in response to the current global COVID-19 pandemic. The implications that derive from this study will have conceptual, practical and policy implications when adopting and adapting the creative hub concept for the Malaysian context. Keywords: Creative cities, creative hubs, concept, Malaysia

Blockchain technology use case in supply chains in transport hubs

Introduction. Efficient freight transport and management in large transportation hubs is crucial to world trade. Existing freight management systems fail to ensure traceability, transparency, information security and consistency of data stored and exchanged during the various operational processes. As a result, this has a negative impact on the performance of transport hubs.Materials and methods. The use of digital information and communication technology (ICT) applications in the transport industry can lead to highly automated processes and more cost-effective solutions. Freight transport requires the use of real-time data exchange between different stakeholders involved in the process. Traditional ICTbased logistics systems use a centralised architecture to host and process data and services. However, centralized logistics systems cannot ensure secure access to real-time data, operational visibility and trust between participating organisations.Results. Automation of various transport hub functions using the Internet of Things (IoT) and cloud computing can adequately improve the performance of transport hub operations. These operations include automation of vehicle interface, container yards, intra-port logistics and terminal receiving point.Discussion and Conclusions. In this paper, we have explored opportunities for process improvement by integrating information exchange between different actors using end-to-end technologies in transport hubs, in particular the concept of blockchain, to optimise operations in international trade by integrating and sharing information between actors in the transport process.

A Markov decision process approach for managing medical drone deliveries

Drone delivery is a fast and innovative method for delivering parcels, food, and medical supplies. Furthermore, this low-contact delivery mode contributes to reducing the spread of pandemic and vaccine-preventable diseases. Focusing on the delivery of medical supplies, this paper studies optimizing the distribution operations at a drone hub that dispatches drones to hospitals located at different geographic locations. Each hospital generates stochastic demands for medical supplies to be covered. This paper classifies stochastic demands based on the distance between hospitals and the drone hub. Satisfying the demands requires flying over different ranges, which is directly related to the amount of charge of the drone batteries. We develop a stochastic scheduling and allocation problem with multiple classes of demand and model the problem using a finite Markov decision process approach. We provide exact solutions for the modest sizes instances using backward induction and discuss that the problem suffers from the curses of dimensionality. Hence, we provide a reinforcement learning method capable of giving near-optimal solutions. We perform a set of computational tests using realistic data representing a prominent drone delivery company. Finally, we analyze the results to provide insights for managing drone hub operations and show that the reinforcement learning method has high performance compared with the exact and heuristic solution methods.

Minding Braess Paradox amid third-party logistics hub capacity expansion triggered by demand surge

Third-party logistics (3PL) in the U.S. has been declared essential by the government and 3PL firms are tasked to continue their operations amid the pandemic. Meanwhile, demand for e-commerce deliveries have exploded due to strict enforcement of lockdowns and the public's preference to avoid physical contacts. To process the record increase in volume, 3PL firms have expanded capacities of their consolidation hubs. However, expansion in a hub capacity might risk delay propagation through the hub's conveyer systems and lead to a counterintuitive phenomenon known as Braess Paradox (BP). We present two layouts (Two-Way Secondary Sort and Direct Sorting) that are commonly employed in the 3PL hubs to accommodate high volumes. We then extend by differentiating 3PL's traffic into Regular and Express packages and include penalty cost in the model. The results show that the BP may occur in 3PL hub settings. However, both layouts are impacted differently. We compare the performances of the two sorting layouts and present value ranges where the benefits of one layout might outweigh the other in hub operations. We also expand the two-tier model by adding an extra tier of package type (i.e., Critical Package) and provide findings that are more generic to any multiple-tier model. Our findings help in identifying the conditions that 3PLs can avoid BP and improve their hub performances with suitable configurations of flow layout.

How Can Food Hubs Best Serve Their Buyers? Perspectives from Vermont

ABSTRACT Food Hubs (FHs) have been touted for their role in local and regional food systems. This study aims to understand the perspectives of Food Hub (FH) buyers and identify effective practices for FHs to serve these clients. Drawing on an analysis of survey and interview data with buyers, we describe how buyer perceptions of local food and experiences with FHs shape their purchasing decisions. Specifically, we describe how purchasing decisions are shaped by buyers’ perceptions of the shared value of local food and buyers’ perceptions of the efficacy of food hub operations. Our implications focus on FH practices that could grow or strengthen their buyer base.

MERGERS AND PRODUCT QUALITY: A SILVER LINING FROM DE‐HUBBING IN THE U.S. AIRLINE INDUSTRY

This paper investigates how de‐hubbing, which occurs when an airline ceases hub operations, impacts product quality. Examining four cases of de‐hubbing following U.S. airline mergers between 1998 and 2016, we analyze three product quality measures: on‐time performance, travel time, and flight cancellations. In order to isolate a merger's impact on product quality, we compare the results of four de‐hubbing events that followed a merger with three de‐hubbing cases that occurred independently of a merger. We find a silver lining from mergers because product quality improvements are isolated to de‐hubbing events which follow airline mergers rather than nonmerger‐induced de‐hubbing. (JEL L15, L93)

Performance of Hub and Spoke Networks of Selected Airlines

Abstract Networks are the core part of airline operations and key aspect that define strategy of a carrier. They are defined by served markets, number of destinations, their configuration and airline business models. Nowadays, we recognize two principal concepts of network structures: Hub and spoke and Point-to-point. The Hub and spoke concept is subject of this paper. Historically, airlines operated highly regulated point-to-point networks which changed towards more profitable operation after the deregulation of the industry. Airlines adopted hub and spoke concept and so expanded their networks to serve multiple origins and destinations in more efficient manner by interconnecting them at one central point - its hub. An important factor in hub and spoke operations is the connectivity. Flights are scheduled into clusters of arrivals and departures in order to increase number of possible connection within acceptable time frame. The more feasible connections an airline can provide the more traffic can be induced to fill up their flights. This paper investigates ways in which airlines operate at their hubs and what patterns of inbound/outbound flights they have incorporated. Simple benchmarking of hub and spoke operations of selected airlines and their performance at respective hubs is carried out. In the end, authors present conclusion on the hub and spoke structures of airlines that were subject of this paper.

Efficiency in nigerian airports

This paper analyzes efficiency levels in Nigerian airports using a stochastic frontier model that captures the impact of unobserved managerial ability during the period 2003–2014 based on the methodology presented in Alvarez et al. (2004) – the AAG model. Managerial ability in Nigerian airports is an important issue for sustaining efficiency levels because they are labor intensive rather than capital-intensive facilities. The AAG model was modified in this research to measure two exogenous contextual variables, namely regulation and hub. Under this modified version of the AAG model, inputs and outputs are disentangled in the frontier estimate while simultaneously allowing these contextual variables to control the impacts of managerial ability on efficiency. Results not only suggest that variations in efficiency scores are more sensitive to labor than to capital costs, but also indicate a negative impact of regulation and hub operations on efficiency levels possibly due to the small operational scale of Nigerian airports. Policy implications are derived.

ACP-based Management and Control System for Urban Passenger Transportation Hubs

Accurate assessment and effective control of urban passenger transportation hub operations are an area that traditional methods have yet to address satisfactorily. This article presents a framework for parallel management and control based on the artificial societies, computational experiments, and parallel execution (ACP) paradigm. The authors first introduce the components, internal interactions, and support mechanism of artificial transportation hubs. They then describe an agent-based model for the hub including the computational experiments and responsibilities of parallel execution in active hub management and control. Thy also present an implementation of the framework through field tests. The framework can improve operational efficiency and service quality of urban passenger transportation hubs.

Origin–destination synthesis for aviation network data: examining hub operations in the domestic and international US markets

SummaryHub‐and‐spoke networking is a key feature of current aviation markets in which hubs, as connecting points, function to consolidate and redistribute flows. This indicates that observation of traffic on a segment does not necessarily convey information about the origin to destination routing of passenger journeys because of the unavoidable detours in the system. This paper examines the heterogeneity of the flow composition in domestic and international US markets, which in turn allows us to observe the variation of operations across major hubs. A modified Route Flow Estimator for origin–destination synthesis (or origin–destination matrix estimation) is designed to decompose the segment traffic into itinerary‐based passenger trips. Several public and commercial databases, which are easily accessible, are exploited (and reconciled) for the model in order to (i) generate possible trip itineraries using those segment markets, and (ii) link data‐driven operational conditions with the underlying segment flows. The results are validated with US domestic trip observations and empirical knowledge related to the air transportation system. Then, the variability of the hub operations is examined based on sensitivity tests using the model parameters. From the resolution of itinerary‐based estimates, we observe that major airports' hub operations are spatially uneven, particularly with respect to domestic and international connecting passengers. Copyright © 2017 John Wiley & Sons, Ltd.

Arrival time optimization at hubs of network airlines

Purpose The purpose of this study is to investigate the prospects and feasibility of optimizing the speed of an arriving aircraft flying into a hub of a network airline to prevent congestion, reduce costs and maximize profit. Design/methodology/approach The cost function of each arriving aircraft is compared to other aircrafts arriving in the same wave of an airport. These cost functions are the sum of the time-variant cost functions of each passenger; the aircraft itself is taken into account for fuel consumption, fuel price or the cost of possible missed connections of passengers. An optimization is done in terms of speed adjustments to maximize the revenue of those flights arriving at a hub of a network carrier airline. Findings The simulation shows that it is theoretically possible to control the speed of an aircraft by a real-time optimization to minimize costs of airline hub operations. Research limitations/implications There are more influence factors to be investigated than the ones mentioned in this study. Practical implications Practical use in airline operation is more complicated as in simulation, and the interface with reservation systems is difficult to establish. Originality/value Systems as shown here are not used in the airline business presently; therefore, an immediate demand on research in this field is vital.

Mergers and Product Quality: The Impact of De-Hubbing in the U.S. Airline Industry

This paper investigates how de-hubbing, which occurs when an airline ceases hub operations, impacts product quality. Examining five cases of de-hubbing following U.S. airline mergers between 1998 and 2015, we analyze how three measures of product quality change following de-hubbing: on-time performance, travel time, and flight cancellations. While state attorney generals have opposed recent airline mergers due to concerns about potential job losses and a reduction in airport service following airport de-hubbing, we find a silver lining from mergers as airlines offer improved product quality at de-hubbed airports due to more reliable flight schedules and shorter travel times.

A game-based meta-heuristic for a fuzzy bi-objective reliable hub location problem

Nowadays, offering fast and reliable delivery service has become a vital issue associated with all shipment delivery systems. Due to unpredictable variability in travel times, configuration of transportation systems plays a key role in ensuring of meeting the delivery service requirement. This paper tries to investigate the effect of delivery service requirement on the configuration of the transportation system through a hub-and-spoke network. The primary goal of this paper is to study a bi-objective single allocation p-hub center-median problem (BSpHCMP) by taking into account the uncertainty in flows, costs, times and hub operations. The proposed problem is modeled through a bi-objective mixed-integer non-linear programming (BMINLP) formulation that simultaneously locates p hubs, allocates spokes to the located hubs, and assigns different transportation mode to the hub-to-hub links. Then, a fuzzy-queuing approach is used to model the uncertainties in the network. Additionally, an efficient and powerful evolutionary algorithm based on game theory and invasive weed optimization algorithm was developed to solve the proposed BSpHCMP model and obtain near optimal Pareto solutions. Several experiments besides a real transportation case show the applicability of the proposed model as well as the superiority of the proposed solution approaches compared to NSGA-II and PAES algorithms.

The effect of de-hubbing on airfares

This paper studies the price effect of de-hubbing, which occurs when an airline ceases hub operations at an airport. We develop a simple theoretical model to study the impact of de-hubbing on prices and quantities of direct flights at the hub airport. Using an event study of seven cases of de-hubbing between 1993 and 2009, we analyze how average airfares change following de-hubbing. Consistent with the theoretical implications, the empirical results suggest that airfares decrease when there is a low-cost carrier presence at the de-hubbed airport, whereas airfares increase when the de-hubbed airport is not serviced by a low-cost carrier.

Connections: Challenge of the future

Facilitating flight connections (especially inter-sector connections) is a major issue facing airports today. Airline competitiveness is greatly increased by hub operations, and any gateway airport that is growing is likely seeing a greater portion of its traffic moving to inter-sector connections. But facilitating these connections has a profound impact on the operation of a passenger building and many passenger buildings are not well suited to making them easy and intuitive. New inter-sector connection facilities present airports with many challenges, and the solutions are typically expensive. They often require a reassessment of the strategic development plans of the airport along with the application of deep experience and creativity. This paper reviews a range of typical situations and workarounds, specifically in light of the growth in the number of US preclearance facilities around the world, and concludes that, while there really are no quick and easy solutions, the best approach is to plan for inter-sector connections well in advance.