Hao Wang
Ningbo Institute of Technology, Zhejiang University, Ningbo, 315000, China
Salvador Hernandez
Department of Civil Engineering, University of Texas at El Paso, El Paso, Texas, 79902, USA000
Ruey Long Cheu
Department of Civil Engineering, University of Texas at El Paso, El Paso, Texas, 79902, USA000
ABSTRACT
This study proposes a Centralized Carrier Collaboration Multi-hub Location Problem (CCCMLP) with processing cost at hub for the small-to medium-sized LTL industry where a central entity (e.g., a third party logistics firm) seeks a set of hybrid collaborative consolidation transshipment hubs to help establish a collaborative hybrid hub-and-spoke network that minimized the total collaborative costs for the set of collaborating carriers in the system. A mathematical programming formulation was provided for the CCCMLP with hub processing cost and shown to be NP-hard. The model was solved using a two-phase tabu search heuristics. Computational runs were conducted to study the efficiency of the tabu search heuristic over CPLEX. As the expected cost reduction at the shipment level needed to incentivize collaboration decreases, likelihood of carriers entering into collaboration increases. If the carriers expect significant cost reductions to enter into a collaborative strategy, then the potential savings from the collaboration will decrease.
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How to cite this article
Hao Wang, Salvador Hernandez and Ruey Long Cheu, 2013. Centralized Carrier Collaboration Multihub Location Problem with Hub Processing Costs. Information Technology Journal, 12: 4400-4403.
DOI: 10.3923/itj.2013.4400.4403
URL: https://scialert.net/abstract/?doi=itj.2013.4400.4403
DOI: 10.3923/itj.2013.4400.4403
URL: https://scialert.net/abstract/?doi=itj.2013.4400.4403
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