A Model to Choose Hub and Route Determination
Keywords:Strategic decisions, Choosing hub , Distribution process , VRP
Determining a transport hub is a strategic decision to build a good distribution flow. In this paper, We suggested a model for choosing hub locations as sources for companies. In previous studies, The determination of hub locations with a vehicle routing problem is not integrated. Therefore, this study built a model to assess the position of the hubs by considering the budget. The business should have a decision on vehicle routing with hubs to reduce total transport costs. In addition, the method of distribution of goods for hubs and non-hubs with third-party logistics was determined by the use of a vehicle routing problem. The optimal weight was obtained through the analysis of sensitivity. In the sensitivity analysis, this study found that the best choice in this study was to use a weight of 0.9–1.0. It provides the lowest total cost of transport.
 M. Farber. (2016, 1 January). Retail: online shopping.
 A. Garcia, "Amazon prime day shattered global sales records," in CNN Money, ed, 2015.
 G. Ozbaygin, O. E. Karasan, M. Savelsbergh, and H. Yaman, "A branch-and-price algorithm for the vehicle routing problem with roaming delivery locations," Transportation Research vol. 100, pp. 115-137, 2017. https://doi.org/10.1016/j.trb.2017.02.003.
 G. B. Dantzig and J. H. Ramser, "The truck dispatching problem," Management science, vol. 6, pp. 80-91, 1959. https://doi.org/10.1287/mnsc.6.1.80.
 H. Min, "The multiple vehicle routing problem with simultaneous delivery and pick-up points," Transportation Research Part A: General, vol. 23, pp. 377-386, 1989. https://doi.org/10.1016/0191-2607(89)90085-X.
 R. Baldacci, M. Battarra, and D. Vigo, "Routing a heterogeneous fleet of vehicles," in The vehicle routing problem: latest advances and new challenges, ed: Springer, 2008, pp. 3-27.
 B. Domínguez-Martín, I. Rodriguez-Martin, and J.-J. Salazar-Gonzalez, "The driver and vehicle routing problem," Computers & Operations Research, vol. 92, pp. 56-64, 2018. https://doi.org/10.1016/j.cor.2017.12.010.
 N. A. El-Sherbeny, "Vehicle routing with time windows: An overview of exact, heuristic and metaheuristic methods," Journal of King Saud University-Science, vol. 22, pp. 123-131, 2010. https://doi.org/10.1016/j.jksus.2010.03.002.
 T. Bektaş, G. Erdoğan, and S. Røpke, "Formulations and branch-and-cut algorithms for the generalized vehicle routing problem," Transportation Science, vol. 45, pp. 299-316, 2011. https://doi.org/10.1287/trsc.1100.0352.
 M. Fischetti, J. J. S. González, and P. Toth, "The symmetric generalized traveling salesman polytope," Networks, vol. 26, pp. 113-123, 1995. https://doi.org/10.1002/net.3230260206.
 M. Fischetti, J. J. Salazar González, and P. Toth, "A branch-and-cut algorithm for the symmetric generalized traveling salesman problem," Operations Research, vol. 45, pp. 378-394, 1997. https://doi.org/10.1287/opre.45.3.378.
 A. Montoya, C. Guéret, J. E. Mendoza, and J. G. Villegas, "A multi-space sampling heuristic for the green vehicle routing problem," Transportation Research Part C: Emerging Technologies, vol. 70, pp. 113-128, 2016. https://doi.org/10.1016/j.trc.2015.09.009.
 C. E. Noon and J. C. Bean, "A Lagrangian based approach for the asymmetric generalized traveling salesman problem," Operations Research, vol. 39, pp. 623-632, 1991. https://doi.org/10.1287/opre.39.4.623.
 A. Weber, Ueber den standort der industrien vol. 1: Рипол Классик, 1909.
 S. Erdoğan and E. Miller-Hooks, "A green vehicle routing problem," Transportation Research, vol. 48, pp. 100-114, 2012. https://doi.org/10.1016/j.tre.2011.08.001.
 Ç. Koç and I. Karaoglan, "The green vehicle routing problem: A heuristic based exact solution approach," Applied Soft Computing, vol. 39, pp. 154-164, 2016. https://doi.org/10.1016/j.asoc.2015.10.064.
 A. Montoya, C. Guéret, J. E. Mendoza, and J. G. Villegas, "The electric vehicle routing problem with nonlinear charging function," Transportation Research, vol. 103, pp. 87-110, 2017. https://doi.org/10.1016/j.trb.2017.02.004.
 J. Andelmin and E. Bartolini, "An exact algorithm for the green vehicle routing problem," Transportation Science, vol. 51, pp. 1288-1303, 2017. https://doi.org/10.1287/trsc.2016.0734.
 G. Desaulniers, F. Errico, S. Irnich, and M. Schneider, "Exact algorithms for electric vehicle-routing problems with time windows," Operations Research, vol. 64, pp. 1388-1405, 2016. https://doi.org/10.1287/opre.2016.1535.
 G. Hiermann, J. Puchinger, S. Ropke, and R. F. Hartl, "The electric fleet size and mix vehicle routing problem with time windows and recharging stations," European Journal of Operational Research, vol. 252, pp. 995-1018, 2016. https://doi.org/10.1016/j.ejor.2016.01.038.
 M. Keskin and B. Çatay, "Partial recharge strategies for the electric vehicle routing problem with time windows," Transportation Research, vol. 65, pp. 111-127, 2016. https://doi.org/10.1016/j.trc.2016.01.013.
 L. V. Snyder and M. S. Daskin, "A random-key genetic algorithm for the generalized traveling salesman problem," European journal of operational research, vol. 174, pp. 38-53, 2006. https://doi.org/10.1016/j.ejor.2004.09.057.
 A. Froger, J. E. Mendoza, O. Jabali, and G. Laporte, "A matheuristic for the electric vehicle routing problem with capacitated charging stations," 2017. https://hal.archives-ouvertes.fr/hal-01559524/document.
 F. Ibrahim and A. Rusdiansyah, "Model Hub Median Problem Dengan Batasan Travel Time," Jurnal Teknik Industri, vol. 18, pp. 1-8, 2017. https://doi.org/10.22219/JTIUMM.Vol18.No1.1-8.
 J. G. Klincewicz, "Hub location in backbone/tributary network design: a review," Location Science, vol. 6, pp. 307-335, 1998. https://doi.org/10.1016/S0966-8349(98)00042-4.
 J. F. Campbell and M. E. O'Kelly, "Twenty-five years of hub location research," Transportation Science, vol. 46, pp. 153-169, 2012. https://doi.org/10.1287/trsc.1120.0410.
 C. L. d. S. Vieira and M. M. M. Luna, "Models and methods for logistics hub location: a review towards transportation networks design," Pesquisa Operacional, vol. 36, pp. 375-397, 2016. http://dx.doi.org/10.1590/0101-7438.2016.036.02.0375
 M. T. Melo, S. Nickel, and F. Saldanha-Da-Gama, "Facility location and supply chain management–A review," European journal of operational research, vol. 196, pp. 401-412, 2009. https://doi.org/10.1016/j.ejor.2008.05.007.
 S. A. Alumur, B. Y. Kara, and O. E. Karasan, "Multimodal hub location and hub network design," Omega, vol. 40, pp. 927-939, 2012. https://doi.org/10.1016/j.omega.2012.02.005.
 R. Martí, Á. Corberán, and J. Peiró, "Scatter search for an uncapacitated p-hub median problem," Computers & Operations Research, vol. 58, pp. 53-66, 2015. https://doi.org/10.1016/j.cor.2014.12.009.
 R. Z. Farahani, M. SteadieSeifi, and N. Asgari, "Multiple criteria facility location problems: A survey," Applied Mathematical Modelling, vol. 34, pp. 1689-1709, 2010. https://doi.org/10.1016/j.apm.2009.10.005.
 M. R. A. Jokar, "Facility and hub location model based on gravity rule," Computers & Industrial Engineering, vol. 109, pp. 28-38, 2017. https://doi.org/10.1016/j.cie.2017.04.005.
How to Cite
Copyright (c) 2019 Kevin Kevin, Y. M. Kinley Aritonang, Julius Dharma Lesmono
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.