Centralized Carrier Collaboration Multihub Location Problem for Less-Than-Truckload Industry: Hybrid Hub-and-Spoke Network

A centralized carrier collaboration multihub location problem (CCCMLP) for the small to medium-sized less-than-truckload industry is addressed. In the CCCMLP, a central entity (e.g., a third-party logistics firm) seeks a set of collaborative consolidation transshipment hubs to establish a hybrid collaborative hub-and-spoke system that minimizes the total collaborative costs for the set of collaborating carriers. Previous studies focused on addressing the exchange of capacity without considering the location of transfer hubs and the routes that connect them. A carrier has the option either to collaborate or to ship its demand directly without collaborating. The decision depends on the expected profit margin over shipping directly while following a revenue-generating, rate-setting behavior. The CCCMLP was formulated as a variant of the P-hub location problem, which is NP-hard and solved with Lagrangian relaxation. Numerical experiments were conducted to gain insight into the performance of the CCCMLP formulation under various network sizes and numbers of hubs. The results indicate that larger expected profit margins from collaborative carriers applying revenue-generating behavior would increase the likelihood of collaboration by carriers. As the network size increases, the effect of hybrid hub location costs drops.

• Record URL:
  https://doi.org/10.3141/2269-03
• Summary URL:
  http://scholar.google.com/scholar_lookup?title=Centralized+Carrier+Collaboration+Multihub+Location+Problem+for+Less-Than-Truckload+Industry%3a+Hybrid+Hub-and-Spoke+Network&author=S.+Hern%c3%a1ndez&author=A.+Unnikrishnan&author=S.+Awale&publication_year=2012
• Availability:
  • Find a library where document is available. Order URL: http://www.trb.org/Main/Blurbs/167721.aspx
• Supplemental Notes:
  • This paper was sponsored by TRB committee AT015(3) CFP - Freight Transportation and Logistics Modeling
• Authors:
  • Hernández, Salvador
  • Unnikrishnan, Avinash
  • Awale, Satyen S
• Publication Date: 2012

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 20-28
• Monograph Title: Freight Systems 2012: Modeling and Logistics
• Serial:
  • Transportation Research Record: Journal of the Transportation Research Board
  • Issue Number: 2269
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Cooperation; Costs; Hub and spoke systems; Less than truckload traffic; Location; Profits; Third party logistics providers
• Subject Areas: Freight Transportation; Planning and Forecasting; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01373032
• Record Type: Publication
• ISBN: 9780309223102
• Report/Paper Numbers: 12-4247
• Files: TRIS, TRB, ATRI
• Created Date: Jun 15 2012 4:05PM