Air Express Network Design with Hub Sorting

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Air Express Network Design with Hub Sorting

Air Express Network Design with Hub Sorting

Abstract

Air Express Network Design with Hub Sorting dissertation examines an innovative strategic operation for next day air package delivery. The proposed system, in which some packages are sorted twice at two distinct hubs before arriving at their destinations, is investigated for its potential savings.

A two-stage sorting operation is proposed and compared to the currently operated single-stage sorting operation. By considering the endogenous optimization of hub sorting and storage capacities, cost minimization models are developed for both operations and used for performance comparison. Two solution approaches are presented in this study, namely the Column Generation (CG) approach and the Genetic Algorithm (GA) approach.