The Design of Hybrid Hub-and-spoke Networks for Large-scale Dynamic Express Logistics: A Case Study of Chinese Express*

Abstract

With the continuous growth of express demand, the impact of its fluctuations is becoming more and more significant. The traditional H&S networks cannot respond intelligently to the demand changes. Therefore, a new network design method combining information and automation needs to be developed urgently. This paper considers a multi-hub version and proposes a hybrid network to dynamically design the hubs' locations and the straight connections between nodes. A mixed integer linear programming model is formulated, and a two-stage genetic algorithm is developed to solve the small and large-scale instances of the hybrid H&S network design problem. The MILP and heuristic algorithm are tested on instances provided by an express delivery giant from China. Experimental results verify the effectiveness and economy of the hybrid H&S network and the ability of the proposed heuristic algorithm to quickly find the approximate optimal solution.