Routing Problem for Hybrid Hub-and-spoke Transportation Network: a Case Study of a LTL Carrier

Hub-and-spoke transportation network can help Less-Than-TruckLoad carriers lower their total costs by consolidation transportation. In many cases, hybrid hub-and-spoke systems with some direct routes can be more cost-effective than pure ones. By means of analyzing a real case, this paper develops new mathematical models for a hybrid hub-and-spoke system, solving them using genetic algorithm with some strategies to determine vehicle types. At last, an average cost reduction of 2.68% is given and an optimal route planning result which forms a hybrid hub-and-spoke transportation network is described.