Carrier Collaborative Networks: Hybrid Hub Location Algorithms

Within the context of the Logistics and supply chain and management, the Hybrid Hub and Spoke system has certain complexities regarding the selection of the hub location in the supply chain facility system. The performance and efficiency of the network route selection and hub location depends upon the percentage savings that has been made by choosing the appropriate location for the hub to maintain the efficient flow of the goods within the network. Hub location selection mostly depends on the profit margins shared by the carrier, supply and demand status of the facility and amount of flow of the goods through the facilities. This research develops a mathematical model using Centralized Carrier Collaborative and Multi-Hub Location Problem. The model encompasses various cost like costs of transportation for Direct Transport and Collaborative Transport, cost related to loading, unloading and operations, holding costs and maintenance cost, these are incorporated in taking decision for locating hub within a set of nodes/facilities. A Genetic algorithm meta-heuristic is used to solve the large size problems. The solution obtained using this meta-heuristics are compared with solution obtained from using Lagrangian Relaxation approach. An experimental study evaluates the sensitivity of the problem and analyses the hub location behavior of the problem by varying the profit margins and level of willingness of the carriers to collaborate subject to the percentage saving made