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Modelling for location hubs in the express cargo transport

This study proposes a mathematical model of linear programming with binary variables 0/1 to project the configuration of a distribution network for express cargo which aims to minimize costs and guarantee a high level of service. The model, which is a modification of the formulation proposed by O’Kelly, defines the position of the hubs, their allocation regarding the other physical installations, and the building of itineraries with only one intermediate stop, which increases agility in meeting the demand of cargo transport. It assumes the installation of a single, major hub (Main Hub), which serves as the transfer point for the flow of cargo between distinct regions of a territory and a set of regional terminals (mini hubs) serving as connection points solely for the flow of cargos existing within a determined area of coverage. Extensions were proposed with capacity constrains for the Main Hub, thereby avoiding congestion, and two different strategies to induce an increase of the flow of cargo manipulated by the mini-hubs. The proposed model and its extensions were applied to an actual case study, obtaining consistent results and a significant reduction in the total cost for the distribution network of the company studied.

Industrial localization; operational research; cargo terminals; cargo transport


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