Article ID: | iaor200326 |
Country: | Netherlands |
Volume: | 78 |
Issue: | 2 |
Start Page Number: | 207 |
End Page Number: | 220 |
Publication Date: | Jan 2002 |
Journal: | International Journal of Production Economics |
Authors: | Zapfel Gunther, Wasner Michael |
Keywords: | hub-and-spoke, postal services |
Increased competition in the transport market has led to new cooperative arrangements between third-party logistics providers in the form of hub-and-spoke systems. In addition to the design problem, the operative planning task of a hub-and-spoke network is a challenging task for the management of such transportation networks. In particular, the transport management has to decide whether a pure hub-and-spoke system should be realized, where all quantities within the transportation network flow over the hub from or to the depots, or whether a hybrid hub-and-spoke network is preferred in which direct transports also take place. Mathematical models for these operative planning tasks are developed and applied to a real case of an Austrian parcel service provider. While the actual problem is taken from a real parcel service provider the model can also be applied in the general cargo industry. Cost savings of the hybrid hub-and-spoke system are described.