• Journal of the Korean Society for Railway
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• v.7 no.3
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• pp.264-270
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• 2004

The hub-and-spoke strategy is widely used in the field of transportation. At the field of rail transportation, however, it is difficult that we find an application case of this strategy because of modal characteristics. According to the fast growth of containerization and the development of transshipment technology, presently, the hub-and-spoke strategy is introduced by operators on actual European rail freight transportation. However, it is hardly to find empirical studies evaluating the applicability of transportation strategy. In this context, this study analyzed the applicabilities of hub-and-spoke strategy in the actual network of European rail freight. For the application and evaluation of the characteristics of hub-and-spoke strategy, it utilized a service network design model for rail freight. Utilizing this model, it analyzed the efficiency of furnished rail freight services, the potential locations of hubs, the characteristics of O-D flows by the types of trains and service links, and the types of paths of O-D flows. Finally, it proposed some implications and the further study topics.

• Korean Management Science Review
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• v.28 no.3
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• pp.1-13
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• 2011

Hub-and-spoke transportation network is a powerful and useful network structure that takes full advantage of economies of scale on routes between hubs. In recent studies, the network structure is extended to hybrid hub-andspoke that allows direct transportation between spokes. In this study, we considered more extended network structure which is called hybrid multiple hub-and-spoke that has multiple hubs and allows direct transportation between spokes. We developed a mathematical optimization model for automotive service parts transportation planning under hybrid multiple hub-and-spoke network structure. The model suggests a long-term transportation route planning and a short-term vehicle assignment planning. The model is verified by simulation and validated in real world application to Hyundai Mobis automotive service parts transportation planning. From the simulation result, the model reduced the transportation cost about 24.7%, the total distance about 6.8% and the CO2 emissions about 8.8%. In real world application for 6 months from July to December 2010, the model reduced the transportation cost about 9.1% by changing the long-term transportation route without daily vehicle assignment planning.

• Journal of the Korean Operations Research and Management Science Society
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• v.31 no.2
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• pp.141-155
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• 2006

In this paper, we address an extended hub-and-spoke transportation network design problem (EHSNP). In the existing hub location problems, the location and number of spokes, and shipments on spokes are given as input data. These may, however, be viewed as the variables according to the areas which they cover. Also, the vehicle routing in each spoke needs to be considered to estimate the network cost more correctly. The EHSNP is a problem of finding the location of hubs and spokes, and pickup/delivery routes from each spoke, while minimizing the total related transportation cost in the network. The EHSNP is an integrated problem that consists of several interrelated sub-problems. To solve EHSNP, we present an approach based on a symbiotic evolutionary algorithm (symbiotic EA), which are known as an efficient tool to solve complex integrated optimization problems. First, we propose a framework of symbiotic EA for EHSNP and its genetic elements suitable for each sub-problem. To analyze the proposed algorithm, the extensive experiments are performed with various test-bed problems. The results show that the proposed algorithm is promising in solving the EHSNP.

• Journal of Korean Society of Transportation
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• v.22 no.3 s.74
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• pp.167-177
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• 2004

The Hub-and-spoke strategy is widely used in the field of transportation. According to containerization and the development of transshipment technology, it is also introduced into European rail freight transportation. The objective of this article is to develop a service network design model for rail freight transportation based on the Hub-and-spoke strategy and efficient algorithms that can be applied to large-scale network. Although this model is for strategic decision, it includes not only general operational cost but also time-delay cost. The non-linearity of objective function due to time-delay factor is transformed into linearity by establishing train service variables by frequency. To solve large scale problem, this model used a heuristic method based on decomposition and three newly-developed algorithms. The new algorithms were examined with respect to four test problems base on the actual network of European rail freight and discussed the accuracy of solutions and the efficiency of proposed algorithms.

• Journal of Korean Institute of Industrial Engineers
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• v.31 no.4
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• pp.303-315
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• 2005

In this paper we address a design problem for hub-and-spoke networks and then consider a capacitated hub locations problem with direct shipment (CHLPwD). We determine the location of hubs, the allocation of nodes to hubs, and direct shipment paths in the network, with the objective of minimizing the total cost in the network. In this paper, CHLPwD is formulated as 0-1 integer programming. We develop an evolutionary algorithm here to solve the large sized CHLPwD. To do this, we present the representation and the genetic operators suitable for the problem and propose a heuristic method for the allocation of nodes to hubs. To enhance the search capability, problem-specific information is used in our evolutionary algorithm. The proposed algorithm is compared with the heuristic method in terms of solution quality and computation time. The experimental results show that our algorithm can provide better solutions than the heuristic.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2005.05a
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• pp.59-71
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• 2005

In this paper we address a design problem for hub and spoke transportation networks and then consider a capacitated hub locations problem with direct shipment (CHLPwD). We determine the location of hubs, the allocation of nodes to hubs, and direct shipment paths in the network, with the objective of minimizing the total cost in the network. An evolutionary algorithm is developed here to solve the CHLPwD. To do this, we propose the representation and the genetic operators suitable for the problem and adopt a heuristic method for the allocation of nodes to hubs. To enhance the search capability, problem-specific information is used in our evolutionary algorithm. The proposed algorithm is compared with the heuristic method in terms of solution quality and computation time. The experimental results show that our algorithm can provide better solutions than the heuristic.

• Journal of the Korean Operations Research and Management Science Society
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• v.24 no.3
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• pp.109-123
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• 1999

Fleet sizing and empty equipment redistribution are two of the most critical problems in managing a fleet of equipment over a transportation network. Where the demand pattern followed the compound Poisson process(CPP) which can be generated one or more at a time under homogeneous Poisson process(HPP), this paper presented a mathematical model to determine control parameters of a decentralized distribution policy and fleet size in case of the pure hub-and-spoke system, a popular form of a logistics system. and validated this model by simulation. That is, where the number of demanded equipments followed geometric and binomial distributions, respectively, cost models on the pure hub-and-spoke logistics system with deterministic trans-portation times, which could be solved analytically, were established and analyzed. We also compared the deterministic case with stochastic one that the transportation time follows some probability distributions.

• Korean Management Science Review
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• v.18 no.2
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• pp.39-60
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• 2001

This Paper deals with a collaborative decision making procedure of web-based DSS for supply chain management (SCM). The seemingly autonomous DSS dedicated to each of mutually exclusive prob1em domains forms a communication network and cooperates each other for better SCM decision making. We a1so propose a hub-spoke information sharing model for the DSS network. In the hub-spoke model, an information hub at the center facilitates information exchange between DSS\\`s and controls the conversations defined by the series of XML messages between agents of DSS. A product ordering scenario where supply decision is triggered upon customer order is used to demonstrate the SCM decision procedure through a collaboration of the web-based DSS.

• IE interfaces
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• v.11 no.1
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• pp.55-66
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• 1998

Fleet sizing and distribution of empty equipments are two of the most critical problems in managing transportation system. This paper develops a cost model for sizing a fleet and establishing decentralized redistribution polices of empty equipments by building from inventory theory of multi-echelon system in hub-and-spoke network. An analytical approach to determine control variables of redistribution policies in each terminal and fleet size of the transportation system is proposed and its results are validated by simulation model. Numerical experiments are conducted with respect to parameters of the model and test results for assumptions of the model are discussed.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.39 no.2
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• pp.103-112
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• 2016

As supply chains are globalized, multinational companies are trying to optimize distribution networks using a hub and spoke structure. In this hub and spoke network structure, multinational companies locate regional distribution centers at hub airports, which serve demands in their corresponding regions. Especially when customers put higher priority on the service lead-time, hinterlands of international hub airports become ideal candidate locations for the regional hub distribution centers. By utilizing excellent airport and logistics services from hub airports, regional distribution centers in the hub airports can match supply with demand efficiently. In addition, regional hub distribution centers may increase air cargo volume of each airport, which is helpful in the current extremely competitive airport industry. In this paper, we classified locational preferences into three primary categories including demand, service and risk and applied the analytic hierarchy process methodology to prioritize factors of locational preferences. Primary preference factors include secondary factors. Demand factor contains access to current and prospect markets. Service factor comprises airport and logistics perspectives. Service factor in terms of airport operations includes secondary factors such as airport service and connectivity. Service factor in terms of logistics operations contains infrastructure and logistics operations efficiency. Risk factor consists of country and business risks. We also evaluated competitiveness of Asian hub airports in terms of candidate location for regional hub distribution centers. The candidate hub airports include Singapore, Hong Kong, Shanghai, Narita and Incheon. Based on the analytic hierarchy process analysis, we derived strategic implications for hub airports to attract multinational companies' regional hub distribution centers.